Access Bank Group, one of Nigeria’s first-tier banks, announced this week it has discontinued the acquisition of the 83.4% stake held by Centum Investment Pic in Sidian Bank Limited based in East Africa’s largest economy, Kenya.
This announcement is meant for stakeholders and the general public who were initially informed on June 8, 2022 that Access Bank wanted to acquire the majority stake held by Centum in Sidian Bank.
According to the bank, the acquisition fell through due to the parties’ inability to meet certain conditions necessary for the successful completion of the transaction, in spite of Kenya’s regulators’ support for the move.
“The completion of the proposed transaction was subject to fulfilment or waiver of certain conditions before the Long Stop date as defined in the transaction agreement. Although regulators have all been supportive in engagements around the transaction, certain conditions precedent needed to prudently complete the transaction have not been met and the parties were unable to reach agreement on the variation of these conditions in a manner to deliver the desired outcome for the parties.
“Consequently, we hereby notify the Nigerian Exchange Ltd and the investing public that Sidian acquisition will no longer be completed by the Bank. The Bank however remains committed to growing its franchise in a safe and sound manner in Kenya and the broader East African Community and will continue to explore a variety of organic and inorganic opportunities to grow its market share therein,” Sunday Ekwochi, Access Bank’s company secretary, announced through a statement released to the Nigerian Exchange Group.
In recent times, Access Bank has increased its presence in East Africa with a number of acquisitions strategically made to boost its presence on the African continent.
Last October, Access Bank also announced it wanted to acquire another bank in Angola, which is Africa’s sixth largest economy and one of the largest crude oil producers on the continent.
” Access Bank, a wholly owned subsidiary of Access Holdings, is pleased to announce that it has entered into a binding agreement with Montepio Holdings SGPS S.A to acquire a 51% majority shareholding in Finibanco Angola S.A.
“Finibanco Angola S.A. is a profitable, well-capitalised full-service commercial bank with over 20 branches and around US$300 million in total assets that has operated in Angola since 2008. The Transaction will be effected via the purchase of existing shares owned by Montepio-the holding company for Banco Montepio, one of Portugal’s well-established commercial banks,” the bank announced in October 2022.
