Access Bank’s N15bn-worth acquisition deal of Sidian Bank collapses

Acquisition talks between Access Holdings and Centum Investment Plc have collapsed as the Nigerian and Kenyan companies failed to agree on conditions to finalise the buyout of 83.4 per cent stake in Sidian Bank.

Both companies were on the negotiating table for Centum Investment’s 83.4 per cent controlling stake in Sidian Bank which is worth N15 billion.

In a statement released in June 2022, Access Holdings stated that the company had agreed to purchase Sidian Bank for N15 billion.

However, in a reverse statement dated January 12, 2023, Access Holdings said its subsidiary, Access Bank, will no longer merge with Sidian as previously disclosed seven months ago.

Read also:Access Bank updates forex application for school fee, upkeep, others

Ripples Nigeria gathered that Access Holdings and Centum Investment didn’t agree on undisclosed conditions.

“Access Holdings Plc trading as Access Corporation (‘the Corporation’) on June 8, 2022, announced that its flagship subsidiary, Access Bank Plc (‘the Bank’) has entered into a binding agreement with Kenyan-based Centum Investment Plc (‘Centum’) for the acquisition of the entire 83.4% shareholding held by Centum in Sidian Bank Ltd (‘Sidian’).

“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. 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 agreement on the variation of these conditions in a manner to deliver the desired outcome for the parties.

“Consequently, we hereby notify the Nigerian Exchange Ltd and the investing public that 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,” the statement reads.

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