Nigeria’s Access Bank continues to spread its reach in the African continent as it acquires 83.4% stake in Sidian Bank from Centum Investment worth Ksh4.3B ( $36.8 million).
According to businesstoday.co.ke, Centum CEO James Mworia confirmed the exit in a statement issued on Tuesday, June 7. He hailed the deal as one of the largest private equity transactions in the region.
Access Bank, on the other hand, hopes to merge Sidian with its existing operations in the country. Access notably acquired another tier-3 lender Transnational Bank (now Access Bank Kenya), which was associated with the Moi family, in early 2020.
Access Bank hopes the Sidian deal will catapult it to the status of a strong tier 2 bank in the country.
Roosevelt Ogbonna, CEO of Access Bank, stated: “The transaction builds on our earlier acquisition of Transnational Bank (now Access Bank Kenya) and underscores our drive to strengthen our presence in Kenya which is a key African market that fits into our core strategic focus for geographic earnings, growth and diversification.”
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“Through this transaction and the subsequent merger with Access Bank Kenya, we will be well placed to promote regional trade finance and other cross-border banking services, by leveraging our presence in key global trade corridors and the broader East African Community and COMESA regions,” he added.
Centum acquired a majority stake in the lender from K-Rep Bank in 2014.
Sidian’s primary focus has been on lending to Small and Medium-size enterprises in the country. It posted a profit of Ksh486 million in 2021.
Access, on the other hand, is Nigeria’s largest lender. The bank has been on an acquisition spree across Africa that has seen it snap up banks across the continent.
It acquired its Nigerian rival Diamond Bank in a $235 million deal in 2021. It has also recently acquired South Africa’s Grobank and Cavmont Bank from the Zambian arm of Namibian financial services group Capricorn.