Access Bank Plc, a top Nigerian lender and subsidiary of Access Holdings, announced earlier today that it has begun the process of acquiring an 83.4% majority stake in Nairobi-headquartered Sidian Bank Ltd.
In
a corporate disclosure that was filed with the Nigerian Exchange, the lender
informed stakeholders that it has already signed a binding agreement to this
effect with Centum Investment Plc, which currently controls Sidian Bank.
Business
Insider Africa understands that the deal is for a consideration price of $37
million. Once it is finalised, Sidian Bank would be merged with Access Bank
Kenya; thus creating a stronger financial institution better positioned to
serve customers in the East African country.
Meanwhile,
the Group Chief Executive Officer of Access Holdings, Herbert Wigwe, has given
more insight into the rationale behind the deal, saying:
“The 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”.
This
is the latest in a string of recent acquisitions by Access Holdings. Over the
past five years, there have been concerted efforts by the banking group to
position itself as a truly pan-African bank. Specifically, the group has made a
number of inorganic Africa-focused expansion moves in places like South Africa,
Botswana, Zambia and of course Kenya.
Today, the financial services group is present in more than 10 countries, including South Africa, Rwanda, Democratic Republic of Congo, Ghana, etc.
Source:businessinsder