Access Bank’s Kenyan expansion on course despite setback

Marcus Amudipe
Marcus Amudipe

Bisola Fatoye

Access Bank Plc revealed that its efforts to advance regional trade finance and other cross-border banking services in the East African Community and larger COMESA region will not be affected by the cancellation of its proposed acquisition of Sidan Bank as it pursues its goal of becoming Africa’s gateway to the rest of the world.

The discontinuance had put a stop to Access Bank’s legally-binding agreement with Centum to buy the full 83.4 percent stake in Sidian Bank Ltd. that was held by the investment business.

In order to do this, the bank reassured stakeholders of its dedication to seek ethical business opportunities to increase its presence in Kenya, the region’s major market and trade route.

“The bank 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 there,” the statement by Sunday Ekwochi, Company Secretary of Access Holdings Plc, said.

Speaking on the cancellation of the purchase plan, Ekwochi stated that the proposed acquisition of Sidian Bank was canceled due to a few necessary requirements not being met.

“The planned transaction was subject to the satisfaction or waiver of certain criteria before the Long Stop date as stipulated in the transaction agreement,” he explained. Although all of the regulators have been cooperative, certain prerequisite conditions, such as those imposed on Sidian Bank and necessary for a prudent completion of the transaction, have not been met, and the parties were unable to come to an agreement on the modification of these conditions to deliver the desired outcome for the parties.

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