Access Bank Holdings Plc said its wholly-owned subsidiary, Access Bank Plc has entered into a binding agreement with Centum Investment Company Plc to procure its 83.4 per cent interest in Nairobi-based lender Sidian Bank Limited.
In a corporate filing with the Nigerian Exchange Ltd, the bank informed stakeholders that it has already signed a binding agreement to this effect with Centum Investment Plc, which currently controls Sidian Bank.
The binding pact allows Access Holdings Plc to take a controlling stake estimated at $37 million (N15 billion) in Sidian Bank.
The valuation was arrived at using “a price -to- book multiple of 1.1x based on the audited 31 March 2022 shareholders’ equity of Sidian,” Access Bank said in the regulatory filing by its parent company on Wednesday.
Commenting on the transaction, the Group Chief Executive, Access Corporation, Mr. Herbert Wigwe, said: “The growth transaction being implemented in Kenya represents the relentless focus and execution of our strategic objectives within our banking subsidiary even as we grow the other businesses within Access Corporation’s core segments.”
He added: “The acquisition of Sidian is a significant step-up in scale and potential for Access Bank in Kenya which represents the largest market and trade corridor in East Africa.
“The significant increase in scale and customer base presents us with enormous opportunities to support growth in the various ecosystems we are building in our trade and payment business. The economies of scale that derive therefrom will continue to drive and enhance contributions to all stakeholders”.
Chief Executive Officer of Access Bank Mr. Roosevelt Ogbonna, also commented: “This transaction builds on our earlier acquisition of the former transactional Bank Plc (now Access Bank Kenya) and underscores our resolve to strengthen our presence in Kenya, a key African market that fits into our strategic focus for geographic earnings growth and diversification.
“The acquisition and intended subsequent merger will create a strong and competitive balance sheet for Access Bank in Kenya, positioning us to be well placed to promote regional trade finance and other cross border banking services in the East African Community (EAC) and broader COMESA region.
“The proposed combination with Access Bank Kenya would undoubtedly propel Access Bank into a strong contender in the Kenya market with enhanced capacity to play a more impactful role in in the growth of its economy while delivering increased profitability for our shareholders”
Access Bank (Zambia) Limited in August 2020, entered into a definitive agreement with Cavmont Capital Holdings Zambia Plc (CCHZ) regarding the acquisition of Cavmont Bank Limited, a subsidiary of CCHZ and the subsequent merger of Cavmont Bank’s operations into Access Bank Zambia.