JUST IN: Failure To Reach Agreement Forces Access Bank To Back Out Of Acquisition Of Kenya-Based Sidian Bank

Access Holding Plc has backed out of the acquisition of Kenyan-based bank Sidian Bank.

Access Bank said in a regulatory filing on Friday seen by THE WHISTLER that the deal suffered setback as a result of parties failing to agree on terms.

The holding company had on June 8, 2022, announced that its subsidiary, Access Bank Plc has entered into a binding agreement with Kenyan-based Centum Investment Plc for the acquisition of the entire 83.4 per cent shareholding held by Centum in Sidian Bank Ltd.

It said although regulators have been in support of the acquisition, it has failed to reach terms with Centum.

Access said, “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 acquisition deal is said to worth N15bn.