Access Bank Plc says it has entered into an agreement to acquire the entire 83.4 percent equity stake held by Centum Investment Plc, a Kenyan-based investment company, in Sidian Bank Ltd, for the sum of about N15 billion ($37 million).
The financial institution announced the acquisition in a statement on Wednesday.
Access Bank said the purchase consideration includes the price to “book multiple of 1.1x” based on the audited March 31, 2022 shareholders’ equity of Sidian.
Access Bank to acquire Kenya’s Sidian Bank for N15bn
“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,” the statement reads.
Commenting on the transaction, Herbert Wigwe, the group chief executive, Access Corporation said: “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.”
“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.”