Access Bank has brokered a deal with the investment firm Centum Investment Plc to procure the 83.4 per cent interest the latter holds in Nairobi based lender Sidian Bank making it it’s fifth major acquisition outside its base Nigeria in 18 months.
With the binding pact, Nigeria’s top lender Access Holding Plc would have the opportunity to take control of a stake tentatively at an estimate of $37 million (N 15 Billion) in Sidan.
As seen by PREMIUM TIMES, Access Bank had said in a regulatory filing by its parent company on Wednesday that the 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,”
By way of a merger with the target bank, which opened its 43rd branch this March, Access Bank will be looking to lengthen its strides in Kenya where it already has a subsidiary with an asset valuation of N49.6 billion at the end of last year.
After It Launched a failed bid for the majority shareholding in Union Bank via a planned acquisition of investment company Atlas Mara’s holding in the entity, Access conceded the deal to Titan Trust bank which finalized the takeover of the lender early this month.
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According to CEO Access Holdings, Herbert Wigwe in the statement, “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 system.”
Sidian’s modicum of traction in retail banking presents Access Bank with a market to tap further. The bank is able to lend principally to small and medium-sized enterprises. The deal is expected to go through once the bank measures up to regulators’ demands at home and in Kenya.
Roosevelt Ogbonna, CEO of Access Bank in a statement said “This transaction builds on our earlier acquisition of the former Transnational 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.”
