Access Bank Inches Towards Africa’s Top 5 After Acquiring Kenyan Bank For $37m

By Tosin Olatokunbo

The Group Managing Director of Access Holdings Plc, Herbert Wigwe has disclosed that the corporation is poised to increase its banking subsidiaries across the Africa.

Wigwe spoke on the back of an agreement reached by Access Bank, the group’s banking subsidiary with Centum Investment Company Plc (‘Centum’) for the acquisition of the entire 83.4 per cent equity stake held by Centum in Sidian Bank Limited.

The agreement is still subject to the approval of Nigeria’s Central Bank, CBN and Kenyan Central Bank, sources in the bank said.

With the acquisition, top players in the sector insist that the financial behemoth is on its way to becoming one of Africa’s top five banks.

“The growth transaction being implemented in Kenya represents the relentless focus and execution of our strategic objectives within our banking subsidiary even as we grow the other businesses within Access Corporation’s core segments.

“The acquisition of Sidian is a significant step-up in scale and potential for Access Bank in Kenya which represents the largest market and trade corridor in East Africa.

“The significant increase in scale and customer base presents us with enormous opportunities to support growth in the various ecosystems we are building in our trade and payment business. The economies of scale that derive therefrom will continue to drive and enhance contributions to all stakeholders,” Wigwe said.

According to a statement signed by Sunday Ekwochi, Company Secretary, the transaction signed with the Kenyan firm is worth N15 billion or $37 million.

The details of the agreement indicate that Sidian will be merged with Access Bank’s subsidiary in Kenya, Access Bank Kenya. This is to create a stronger banking institution better positioned to serve Kenya market, according to the statement.

In the last two years, the African lender has inched towards becoming one of the continents’ biggest banks following its slew of acquisition across Africa’s major business capitals.

Wigwe who was recently promoted to his currently position has disclosed that the aim of Corporation is to become one of Africa’s top five by 2027.

“By 2027 Access Bank must be among the top banks in Africa. Access has 50 million accounts are not creating a pan-African bank, we are creating a global brand. We’re like number 12 on the continent today, and we hope to be close to number five by 2027,” he said in March.

In 2020, the bank acquired Grobank Limited, a South African bank after it paid $60 million for the controlling share of the 74-year-old bank.

It was the third acquisition within eight months, after the bank had earlier taken over Kenya’s Transnational Bank in July and later Zambia-based Cavmont Bank.

As Nigeria’s biggest bank by asset, the bank had also acquired a bank in Cameroon, with the aim to expand to eight other markets in Egypt, Ivory Coast, Senegal, Morocco Angola, Namibia, Algeria and Ethiopia.

“The target is to bring Access Bank to 20 countries within few years,” a source told The Source magazine while speaking on the recent acquisition.