Access Bank Plc says it has entered into an agreement to acquire the entire 83.4 per cent equity stake held by Centum Investment Plc, a Kenya-based investment company, in Sidian Bank Ltd, for the sum of about N15 billion ($37 million).
According to a statement on the Nigeria Exchange Limited (NGX) the financial institution said the purchase consideration includes the price to “book multiple of 1.1x” based on the audited March 31, 2022 shareholders’ equity of Sidian.
“Sidian will be merged with Access Bank’s subsidiary in Kenya, Access Bank Kenya, to create a stronger banking institution better positioned to serve the Kenyan market,” the statement reads.
Commenting on the transaction, Herbert Wigwe, the group chief executive, Access Corporation said: “This 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.
“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.
On his part, Roosevelt Ogbonna, chief executive officer, Access Bank, said the transaction built on their 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.”