Nigeria’s top lender, Access Bank, will acquire majority stake in Sidian Bank from Centum Investments for Ksh4.3 billion ($36.8 million), two years after it entered the Kenyan market with the buyout of Transnational Bank.
Centum Investments announced a binding agreement to sell 83.4 per cent stake in Sidian to the Nigerian lender, which has been on an acquisition spree in Africa.
“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. It is expected that in due course, Sidian will be merged with the Nigeria’s lender subsidiary in Kenya to create a stronger banking institution positioned to serve the Kenyan market,” Centum’s CEO, James Mworia, said in a statement to newsrooms.
Access Bank acquired a 99.98 per cent stake of Transnational Bank in 2020 from Close associates of former President Daniel Moi in a deal valued at Sh1.56 billion. Access, which has assets of $25.5 billion, focuses on corporate retail banking and it is expected to boost the growth of Sidian, which will be merged with Transnational Bank which was renamed Access Kenya.
“This acquisition and intended subsequent merger will create a strong and competitive balance sheet for Access Bank in Kenya, positioning us to be well-placed to promote trade finance in Kenya and other cross border banking services in the East African Community and broader COMESA region.” Chief Executive Officer of Access Bank, Mr Roosevelt Ogbonna.
Sidian is an SME and trade finance bank that has grown its Balance Sheet by over 70 per cent from Sh19 billion in December 2012 to Sh30 billion as of March 2022 after Centum’s investment.
The combined Sidian and Access Bank Kenya operations are set to create a lender with Sh57.1 billion assets, making it the largest tier-three lender with a loan book of Sh26.6 billion.