For approximately N15 billion ($37 million), Access Bank Plc has agreed to buy the full 83.4% ownership holding in Sidian Bank Ltd. held by Centum Investment Plc, a Kenyan investment firm.
In a statement sent to the Nigerian Exchange Limited, or NGX, on Wednesday, Access Bank revealed the acquisition, stating that it is pending regulatory approval in both Kenya and Nigeria. According to Access Bank, the purchase consideration comprises the cost of a “book multiple of 1.1 times” based on Sidian’s audited shareholders’ equity as of March 31, 2022.
“This 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,” said Herbert Wigwe, group chief executive of Access Corporation, in response to the transaction.
As Kenya is the biggest market and commerce corridor in East Africa, Access Bank’s acquisition of Sidian offers a major increase in scale and potential.
“We have a ton of opportunities to support growth in the different ecosystems we are building in our trade and payment business because of the significant increase in scale and customer base.”
Access Bank CEO Roosevelt Ogbonna stated that the deal “underlines our resolve to strengthen our presence in Kenya, a key African market that fits into our strategic focus for geographic earnings growth and diversification” and builds on the company’s previous acquisition of the former Transnational Bank Plc (now Access Bank Kenya).
