Kenya: Access Holdings makes U-turn, says it will no longer complete 83.4% acquisition of Kenya’s Sidian Bank

Access Holdings Plc said it will no longer continue in its push to acquire the entire 83.4% shareholding held by Centum in Kenya’s Sidian Bank Ltd.

A corporate disclosure signed by Company Secretary Sunday Ekwochi said Access Bank remains committed to growing its franchise safely and soundly in Kenya.

The bank’s position: Apparently, the completion of the proposed transaction was subject to fulfilment or waiver of certain conditions before the long stop date as defined in the transaction agreement.

But as the company explained, some of these conditions were not met because both parties were unable to reach an agreement on the set conditions.

Their failure to reach an agreement was despite the best effort of Kenyan regulators who provided support through engagements throughout the transaction negotiations.

• “Consequently, we hereby notify the Nigerian Exchange Ltd and the investing public that the Sidian acquisition will no longer be completed by the bank. The bank however remains committed to growing its franchise in a safe and sound manner in Kenya and the broader East African community and will continue to explore a variety of organic and inorganic opportunities to grow its market share therein,” part of the statement said.

The backstory: Access Holdings Plc had earlier entered into a share purchase agreement with the investment firm Centum Investment Plc to procure the 83.4% in a deal that would have made it possible for the Nigerian banking group to take over a controlling stake in Sidian Bank.

The bank had planned to merge Sidian Bank with Access Bank’s subsidiary in Kenya to create a stronger banking institution better positioned to serve the Kenyan market.