Led by Herbert Wigwe, Access Bank acquires Kenya’s Sidian Bank

Access Bank, Nigeria’s largest lender by assets, has acquired Sidian Bank, a Kenyan bank.

According to a press release issued by Access Bank, the Nigerian lender will purchase 83.4 percent of Sidian Bank’s shares from Centum Investment, giving it a majority position in the bank.

The deal is worth Ksh 4.3 billion ($36.7 million).

“Centum Investment Company Plc (‘Centum’) announces today that it has entered into a binding agreement with Access Bank Plc (‘Access Bank’) regarding a proposed purchase by Access Bank of Centum’s entire equity stake in Sidian Bank Limited,” Centum CEO James Mworia announced on Tuesday.

“It is expected that in due course, Sidian will be merged with Access Bank’s subsidiary in Kenya to create a stronger banking institution positioned to serve the Kenyan market,” he added.

In 2014, Centum invested Sh4.7 billion ($40 million) in Sidian Bank, acquiring the majority of the bank’s shares. K-Rep Bank was the name of the lender at the time.

The bank has been stagnating for a long time and Centum had struggled to turnaround its fortunes.

The purchase of Sidian Bank comes two years after Access Bank paid Sh1.56 billion ($13.3 million) for Transnational Bank, which was owned by close associates of the late former President Daniel Moi. After regulatory clearances, the name was changed to Access Bank Kenya, and the bank would now merge with Sidian Bank. In 2020, the Nigerian institution bought Zambia’s Cavmont Bank, and in 2021, it bought Mozambique’s African Banking Corporation.

Access Bank now has around $25.5 billion in assets.

Wigwe, its co-founder, serves as the CEO and owns a 4.27-percent stake in the bank valued at $35.4 million.