Adedapo Adesanya
By Adedapo Adesanya
Access Bank Plc has announced that it would no longer be buying Kenyan-based lender, Sidian Bank Limited, owned by Centum Investment Plc, after the deal hit a snag.
In a notice sent to NASD OTC Securities Exchange, where it trades its stocks, the company said the acquisition, which it put into motion seven months ago, was stopped due to the parties’ failure to reach an agreement that satisfies all the involved parties.
It stated, “Although regulators have all been supportive in engagements around the transaction, certain conditions precedent needed to prudently complete the transaction have not been met, and the parties were unable to reach an agreement on the variation of these conditions in a manner to deliver the desired outcome for the parties.”
Access Bank announced on June 8, 2022, that it had entered into a binding agreement with Centum for the acquisition of the entire 83.4 per cent shareholding held by Centum in Sidian Bank.
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.
“Consequently, we hereby notify the NASD OTC Securities Exchange that the Sidian acquisition will no longer be completed by the bank,” the statement also read following the development.
Access Bank noted that despite this drawback, it would continue to explore its choices in the East African markets and even in Kenya.
“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,” the financial institution stated.
