NAIROBI, Kenya June 8-Centum Investment Company has announced plans to sell its 83.4 per cent equity holding at Sidian bank to Nigeria’s Access bank for Sh4.3billion.
Centum said in a statement the deal with Access Bank, a subsidiary of Access Holdings, was subject to regulatory approval in Kenya and Nigeria.
“This transaction stands as one of the largest private equity transactions in East Africa and reflects a strong commitment by Access Bank to the future of the Kenyan economy. The proceeds from the sale will enable Centum to continue investing across strategic sectors in Kenya and the East African region,” said Centum’s CEO, James Mworia.
It is expected that in due course, Sidian will be merged with Access Bank’s subsidiary in Kenya, formerly Transnational bank, to create a stronger banking institution positioned to serve the Kenyan market.
Commenting on the transaction, the Chief Executive Officer of Access Bank, Mr. Roosevelt Ogbonna said: “This acquisition and intended subsequent merger will create a strong and competitive balance sheet for Access Bank in Kenya, positioning us to be well-placed to promote trade finance in Kenya and other cross border banking services in the East African Community and broader COMESA region.”
Sidian is an SME and trade finance bank that has grown its Balance Sheet by over 70 per cent from Sh19 billion in December 2012 to Sh30 billion as of March 2022 after Centum’s investment.
The robustness and resilience of Sidian’s Balance Sheet has enabled it to deliver high impact services to its clientele.
Additionally, Sidian’s profitability has improved since 2019, with a record profit of over Sh486 million generated in 2021 while NPL Ratio improved from 20.6 per cent in 2017 to 11.7 per cent as of March 2022, comparing favourably to Kenya’s current national average of 14 per cent.
