Nigeria’s biggest lender Access Bank Plc is set to acquire Centum Investment’s 83.4% stake in Kenyan lender Sidian Bank.
“Centum Investment Company Plc (‘Centum’) announces today that it has entered into a binding agreement with Access Bank Plc (‘Access Bank’) regarding a proposed purchase by Access Bank of Centum’s entire equity stake in Sidian Bank Limited,” Centum’s CEO, James Mworia, said in a statement seen by Khusoko on Tuesday.
“This transaction stands as one of the largest private equity transactions in East Africa and reflects a strong commitment by Access Bank to the future of the Kenyan economy,” James Mworia, Centum’s chief executive officer, said.
“It is expected that in due course, Sidian will be merged with Access Bank’s subsidiary in Kenya to create a stronger banking institution positioned to serve the Kenyan market,” he said.
We are proud to have built yet another extraordinary enterprise in @SidianBank, capable of attracting new strategic investors.
Our business is about creating and growing value for our shareholders, and monetizing that value to generate liquidity for another round of investments. pic.twitter.com/WeifDpacXd
— Centum Investment (@CentumPLC) June 8, 2022
Sidian Bank posted a three percent rise in net profit for the first quarter to KSh117.35 million. The lender saw its total interest income in the three months to March grow 26.4 percent to KSh970.96 million as the loan book expanded 13.3 percent to KSh23.3 billion.
The transaction is subject to regulatory approvals in Kenya and Nigeria. If it goes through, it will be the second acquisition in Kenya for Access Bank, which acquired Transnational Bank, now called Access Bank Kenya, in 2020.
“Through this transaction and the subsequent merger with Access Bank Kenya, we will be well placed to promote regional trade finance and other cross border banking services,” Roosevelt Ogbonna, Access Bank’s CEO, said.