Access Bank stakes $37m in Kenyan Bank
Nigerian commercial bank, Access Bank Plc, is working out transactions that would confer it with controlling stakes in smaller commercial bank operating in Kenya, the Sidian Bank.
Access Bank is buying the stake off an investment group, Centum Investments Plc, for $36.8 billion, a statement from the Nigerian bank explained.
Group Chief Executive, Access Corporation, Herbert Wigwe, 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.
“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.”
Similarly, the Chief Executive Officer, Access Bank, Roosevelt Ogbonna, said the transaction builds 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.”
Ogbonna said the acquisition and intended subsequent merger would create a strong and competitive balance sheet for Access Bank in Kenya.
He added that the acquisition also positioned the bank to be well-placed to promote regional trade finance and other cross-border banking services in the East African Community (EAC) and broader Common Market for Eastern and Southern Africa (COMESA) region.
After the acquisition, the Sidian Bank would now be merged with Access Bank Kenya and its braches would bear the Access Bank brand.
Access Bank said: “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 acquisition will thus make Access Bank Plc the new owners of the Sidian Bank and solidify its status as a continental brand with position in many African countries. The deal would mark the sixth international acquisitions by Access Bank group outside Nigeria.
