Centum Investment Company PLC has backtracked on a buyout deal with Nigerian lender Access Bank.
In the deal, Nigeria’s biggest lender, Access Bank Plc, was to acquire Centum Investment’s 83.4% stake in Sidian Bank.
Centum owns 83.4% of Sidian’s issued shares directly and through its wholly-owned subsidiary, Bakki Holdco Limited.
However, in a statement on Thursday, January 12, 2022, the investment company’s CEO, James Mworia, said that the company was forced to abandon the deal after the agreed “long stop date” expired.”
“The Long Stop Date has passed without all the conditions being fulfilled or waived, despite the support and guidance of the Central Bank of Kenya. Further, Centum has not been able to reach acceptable terms with Access Bank PLC for a further extension of the Share Purchase Agreement and has opted not to pursue extension of the same.”
The completion of Access Bank’s acquisition of Sidian shares was subject to various conditions, which were to be met on or before December 5, 2022, or such later date as the parties may agree (the “long stop date”).
The parties later agreed to extend the long-term halt date to January 9, 2023.
“The company hereby issues notice that by reason of the long stop date having been reached and the conditions to the SPA not all having been fulfilled and/or waived by the parties, the share purchase agreement has terminated and ceased to have force and effect.
The shareholders of Centum and the investing public are hereby notified that Centum will continue as a shareholder in Sidian following this termination of the share purchase agreement,” Mworia said.