Access Bank halts proposed acquisition of Kenyan Bank –

ACCESS Bank Plc has announced the termination of its plans to acquire a controlling stake in a Kenyan bank.

According to the bank in a statement, the parties failed to agree on certain conditions “necessary to prudently complete the transaction,”

A company disclosure document signed by company secretary Sunday Ekwochi said Access Bank remained committed to growing its franchise in Kenya in a safe and sound manner.

“However, the bank remains committed to growing its franchise in Kenya and the wider East African community in a safe and sound manner and will continue to explore a variety of organic and inorganic growth opportunities.”

Clearly, the completion of the proposed transaction will require certain conditions to be met or waived by the deadline set out in the transaction agreement.

But as the company explained, some of these conditions were not met because the parties could not agree on the conditions to be set.

They were unable to reach an agreement despite the best efforts of Kenyan regulators, who provided support by participating throughout the deal negotiations.

“As such, we hereby inform the Nigerian Exchange Limited and the investing public that the Bank will no longer complete the acquisition of Sidian,” the statement said.

To recall, Access Bank Plc has reached an agreement to acquire Kenya-based investment firm Centum Investment Plc’s entire 83.4% stake in Sidian Bank Ltd for approximately 15 billion guilders ($37 million). .

Access Bank disclosed the acquisition in a statement to Nigerian Exchange Limited (NGX), noting that the transaction is subject to Kenyan and Nigerian regulatory approvals.

Access Bank said the takeover consideration included a price of “1.1 times book value” based on audited Sidian shareholders’ equity as at 31 March 2022.

Commenting on the deal, Herbert Wigwe, Group Chief Executive Officer of Access Corporation, said: “The implementation of this growth transaction in Kenya represents our relentless focus and execution of our strategic objectives within our banking subsidiaries, even within our core business of Access Corporation. Develop other business segments.”

“The acquisition of Sidian is a significant increase in the size and potential of Access Bank in Kenya, East Africa’s largest market and trade corridor.

“The significant increase in scale and customer base presents us with a tremendous opportunity to support the growth of the various ecosystems we have built across our trade and payments business.”

Access Bank CEO Roosevelt Ogbonna said the deal builds on their earlier acquisition of the former multinational bank Plc (now Access Bank Kenya) “and underscores our strengthening presence in Kenya, an important African The determination of market presence is in line with our strategic focus on geographic revenue growth and diversification.”

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