Access holdings PLC has entered into an agreement with a Kenyan-based bank, KCB group PLC for the acquisition of the entire issued share capital of National Bank of Kenya limited.
The deal will see Access Holdings’ 100% acquisition of the Kenyan national bank from KCB which is also the holding company of KCB bank ltd, Kenya’s largest commercial bank.
In a statement filed on the Nigerian exchange limited on Wednesday, Access holdings’ secretary, Sunday Ekwochi, said the transaction is in furtherance of the bank’s African expansion strategy and will reposition it as a stronger and significant player in the Kenyan market whilst serving as a regional hub for east Africa.
The parties would be working together in the coming months to fulfil the conditions precedent relating to the transaction, which include the regulatory approvals of the central bank of Nigeria and the central bank of Kenya.
Sequel to the completion of the transaction, the target would be combined with Access bank Kenya PLC to create an enlarged franchise in the pursuit of strategic objective for the Kenyan and east African markets.
The bank whose group CEO, Herbert Wigwe, recently passed away in a helicopter crash on February 9th, 2024, returned its immediate past group CEO, Aigboje Aig-Imoukhuede, as group chairman in March.
The monetary value of the acquisition was not disclosed by the parties in their statement but speculations are rife as to the cost implications to the Nigerian based financial giant.
“The Transaction is in furtherance of the Bank’s African expansion strategy and will reposition it as a stronger and significant player in the Kenyan market whilst serving as a regional hub for our East African bloc anchored by a solidified balance sheet.”
“The parties will be working together in the coming months to fulfil the conditions precedent relating to the Transaction, which includes the regulatory approvals of the Central Bank of Nigeria and the Central Bank of Kenya,” the statement said.
The acting Group Chief Executive Officer of Access Holdings, Bolaji Agbede, in a statement said the proposed acquisition marks a significant step in the execution of the bank’s five-year strategic plan aimed at positioning the bank as Africa’s gateway to the world.
“The deal with NBK, a historically strong and well-known bank in Kenya with a balance sheet in excess of US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market.”
“We remain confident that our investments towards diversifying and strengthening the Bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups,” Agbede’s statement read.
Recall, Access holdings have been involved in a number of acquisitions over the years, most recently, the famous acquisition of Diamond bank.
