Access Bank Plc has paid a sum of N15 billion to acquire Kenyan lender, Sidian Bank Ltd, owned by Centum Investment Plc.
The acquisition amounts to 83.4% equity ownership stake in the financial institution.
Centum sold the company to Access Bank in its bid to offload non-dividend paying assets, and offset part of its 1.5 billion shillings of debt. Sidian will now be merged with Access Bank’s subsidiary in Kenya, which was acquired in July 2021.
The subsidiary was previously called Transnational Bank, before it was merged with Access Bank.
In a statement obtained on Wednesday, Group Chief Executive, Access Corporation (Holdings), parent company of Access Bank, Herbert Wigwe, said the deal will scale the subsidiary’s operation in East Africa.
In the statement, Access Holdings said, “The purchase consideration is approximately up to NGN15 billion (USD 37 million), representing a price to book multiple of 1. Ix based on the audited 31 March 2022 shareholders’ equity of Sidian. Sidian will be merged with Access Bank’s subsidiary in Kenya, Access Bank Kenya, to create a stronger banking institution better positioned to serve the Kenyan market.”
According to the Chief Executive Officer of Access Bank, Roosevelt Ogbonna, “The acquisition and intended subsequent merger will create a strong and competitive balance sheet for Access Bank in Kenya.”
Although, the transaction is subject to certain conditions and regulatory approval.