Fakoyejo OlalekanAccess Holdings, the parent company of Access Bank, has announced it will no longer go ahead with the acquisition of Sidian Bank Limited from Kenyan-based Centum Investment Plc.
The Nigerian creditor had disclosed in June 2022 that it was in discussion with Centum Investment to acquire the 83.4 per cent it holds in Sidian Bank.
Join our WhatsApp ChannelHowever, talks have broken down as both parties didn’t agree on some undisclosed conditions relating to the transaction, a document dated January 12, 2023, disclosed.
Access Holdings said the regulators in the country were supportive in engagements around the transaction, but the conditions are necessary to complete the acquisition.
The statement reads: “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.”
Also, Access Holdings told the capital market in the statement that: “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.”
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