Fakoyejo OlalekanAccess Bank, the subsidiary of Access Holdings, owned by Nigerian billionaire, Herbert Wigwe, has acquired Sidian Bank, based in Kenya, almost a year after the Nigerian lender tookover Transnational Bank, another firm in the East African country.
In a statement released to the capital market authority, Nigerian Exchange Limited (NGX) on Wednesday, Access Bank said it acquired 83.4% stake in the firm, through its subsidiary in Kenya, and this cost the Roosevelt Ogbonna-led bank N15 billion.
Wigwe is a Nigerian billionaire (in Naira), and the largest investor in Access Holdings, where he holds over 1.51 billion shares. His total investment in the financial institution is worth N15.10 billion, while the company is valued at N353.67 billion.
Access Bank has been on an acquisition spree since 2019, acquiring Diamond Bank in Nigeria, Grobank in South Africa, Cavmont Bank in Zambia, and African Banking Corporation in Mozambique, in a bid to increase its customer base across African markets, and access new funds.
Ogbonna, the Chief Executive Officer of Access Bank, said in the statement that, “The acquisition and intended subsequent merger will create a strong and competitive balance sheet for Access Bank in Kenya, positioning us to be well-placed to promote regional trade finance and other cross border banking services in the East African Community (“EAC”) and broader COMESA region.”
Explaining the cost of the deal, the company wrote, “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.”
Addressing the acquisition, which maintains Access Bank’s rank as the lender with highest customer base in Africa, the Group Chief Executive Officer of Access Holdings, Herbert Wigwe, said the deal will support both the parent company and subsidiary’s growth in their various markets.
“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.” Wigwe said.
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