- Access bank has continued its expansion to various African countries with the announcement that it has acquired a Kenyan Bank
- The Bank management revealed that it spent over N15 billion to complete the deal that will further cement its place as a continental bank
- Access Bank currently operates through a network of about 366 branches across major cities spanning three continents, 12 countries and 36 million customers.
Access Bank has continued in its effort to expand its service platform across the African continent by adding another Kenyan bank, Sidian Bank Ltd,
The deal which is worth N15 billion is owned by Centum Investment Plc and will see Access take 83.4 per cent equity ownership stake.
The latest deal follows several deals announced in recent years which started with its merger with Diamond bank.
Details of the deal
According to the report, Centum sold the company to Access Bank in its bid to offload non-dividend paying assets, and offset part of its 1.5 billion shillings of debt. Sidian will now be merged with Access Bank’s subsidiary in Kenya, which was acquired in July 2021.
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The subsidiary was previously called Transnational Bank before it was merged with Access Bank.
In a statement obtained on Wednesday 8 June from the website of the Nigerian exchange, the Group Chief Executive, Access Corporation (Holdings), the parent company of Access Bank, Herbert Wigwe, said the deal will scale the subsidiary’s operation in East Africa.
In the statement, Access Holdings said,
“The purchase consideration is approximately up to NGN15 billion (USD 37 million), representing a price to book multiple of 1. Ix based on the audited 31 March 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.”
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According to the Chief Executive Officer of Access Bank, Roosevelt Ogbonna,
“The acquisition and intended subsequent merger will create a strong and competitive balance sheet for Access Bank in Kenya.”
The he transaction is subject to certain conditions and regulatory approval.
List of recent banks acquisition by Access Bank
- Diamond Bank- On 19th December 2018
- Kenya’s Transnational Bank in July 2021
- Zambia-based Cavmont Bank in January 2021
- South Africa’s 74-year-old Grobank- mARCH 2021
- African Banking Corporation of Botswana Limited (BancABC Botswana) October 2021
Zenith, Gtbank lead list of Nigeria's most valuable banks
Meanwhile Legit.ng in an earlier report revealed that Zenith Bank is starting 2022 as the most valuable commercial bank in Nigeria as the total value of Nigerian banks closed at N194.5 billion.
In second-most valuable bank is Guaranty Trust Bank followed by Stanbic IBTC Holdings to complete the top three most valuable banks.
Also, the aggregate market cap of all the banks under review went up by N46.6 billion to stand at N3.84 trillion.