Access Holdings says it will not continue with its proposed acquisition of a controlling stake in Sidian Bank Limited, headquartered in Kenya.
The financial institution made this known on Thursday in a corporate filing signed by Sunday Ekwochi, its company secretary.
In June 2022, Access Holdings entered into an agreement to acquire the entire 83.4 percent equity stake held by Centum Investment Plc, a Kenyan-based investment company, in Sidian Bank Ltd, for the sum of about N15 billion ($37 million).
The completion of the deal was subject to either meeting some prerequisites or waiving them ahead of the ‘long stop date’, the bank said.
However, Access Holdings said the transaction was terminated after failing to meet certain conditions and the parties were unable to reach an agreement to complete the transaction.
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“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,” the document reads.
“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.”
Had the 4.3 billion shilling ($35 million) transaction proceeded, it would have been the second acquisition in Kenya for Access Bank, which acquired Transnational Bank, now called Access Bank Kenya, in 2020.
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The bank had planned to merge Sidian Bank with Access Bank’s subsidiary in Kenya to create a stronger banking institution better positioned to serve the Kenyan market.
