Access Bank withdraws from the proposed acquisition of Sidian Bank in Kenya

Access Holding Plc has given up on buying Sidian Bank, a bank with its main office in Kenya.

In a filing with the government on Friday, Access Bank said that the merger was delayed because the parties could not agree on the terms.

On June 8, 2022, the holding company announced that its subsidiary, Access Bank Plc, had reached a legally binding deal with Kenya’s Centum Investment Plc to acquire the entirety of Centum’s 83.4 percent stake in Sidian Bank Ltd.

Even though the transaction was okayed by the government, it said it couldn’t reach a deal with Centum.

According to Access, “the planned deal’s completion was subject to the satisfaction or waiver of certain conditions prior to the long stop date as specified in the transaction agreement.”

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“Although regulators have all been cooperative in discussions regarding the transaction, certain prerequisite conditions that must be satisfied in order to complete it prudently have not been met, and the parties were unable to come to an agreement on the modification of these conditions in a way that would produce the desired result for the parties.”

“As a result, we hereby inform the Nigerian Exchange Ltd. and the investing public that the bank will no longer complete the acquisition of Sidian.” The Bank will continue to look into a range of organic and inorganic options to increase its market position there; however, it is still committed to expanding its franchise in Kenya and the larger East African Community in a safe and sound manner.

The acquisition agreement is reportedly worth N15 billion.