Access Bank which is Nigeria’s largest lender by assets, has acquired another Kenyan bank; Sidian Bank.
Nigeria's largest bank buys another Kenyan Bank for Sh4.3 billion
Access Bank, Nigeria's largest bank by assets has aquired 2 Kenyan banks in 2 years
According to a report by Business Daily, Access Bank will get a majority stake in Sidian Bank after buying 83.4 % shares from Centum Investments.
Centum will sell its shares to the Nigerian lender in a deal valued at Sh4.3 billion. Access Bank currently has assets worth more than Sh3.3 trillion.
“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,” Centum’s CEO, James Mworia announced on Tuesday.
“It is expected that in due course, Sidian will be merged with Access Bank’s subsidiary in Kenya to create a stronger banking institution positioned to serve the Kenyan market," he added.
Centum bought majority shares in Sidian Bank in 2014 and invested about Sh4.7 billion. At the time the lender was known as K-Rep Bank.
The late billionaire Chris Kirubi had noted that the bank had stagnated for long and Centum had plans to transform it.
The Sh4.3 billion deal entered with Access Bank now shows how Centum struggled to generate as much profits from Sidian Bank as had been expected.
The purchase of Sidian Bank comes two years after Access Bank bought Transnational bank from close associates of the late former President Daniel Moi for Sh1.56 billion.
The name was then changed to Access Bank Kenya and will now merge with Sidian Bank after regulatory approvals.
The Nigerian lender also acquired Zambia’s Cavmont Bank in 2020 and acquired Mozambique’s African Banking Corporation earlier in 2021.
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