By Ken Afor
Access Bank Plc has notified the Nigerian Exchange Limited that it has entered into an agreement with the Kenyan-based KCB Group Plc for the acquisition of National Bank of Kenya Limited.
This was disclosed in a statement filed on the Nigerian Exchange Limited on Wednesday by Access Holdings Plc’s Secretary, Mr. Sunday Ekwochi.
The acquisition would only be deemed completed after Access Bank would have secured regulatory approvals from the Central Bank of Kenya (CBK) and the Central Bank of Nigeria (CBN), respectively.
The statement reads: “Access Holdings Plc (“Access Holdings”) today announces that its flagship subsidiary, Access Bank Plc (“Access Bank” or “the Bank”) has entered into a binding agreement with Kenyan-based KCB Group Plc (“KCB”) for the acquisition of the entire issued share capital of National Bank of Kenya Limited (“NBK” or ‘the Target’’) from KCB. (‘the Transaction’) KCB is also the holding company of KCB Bank Ltd, Kenya’s largest commercial bank.”
“The Transaction is in furtherance of the Bank’s African expansion strategy and will reposition it as a stronger and significant player in the Kenyan market whilst serving as a regional hub for our East African bloc anchored by a solidified balance sheet.
“The parties will be working together in the coming months to fulfil the conditions precedent relating to the Transaction, which include the regulatory approvals of the Central Bank of Nigeria and the Central Bank of Kenya.
“Sequel to the completion of the Transaction, the Target would be combined with Access Bank Kenya Plc to create an enlarged franchise in the pursuit of our strategic objective for the Kenyan and East African markets.”
The proposed acquisition of National Bank of Kenya Limited will be Access Bank Plc’s second acquisition of a Kenyan bank within five years.
Meanwhile, KCB Group Chief Executive Officer (CEO), Paul Russo, said that the acquisition of the entire stake is a deal he considers advantageous for NBK’s future, as reported by Tech Cabal.
On her part, Ms. Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc, said that the proposed acquisition represents a major milestone in advancing the bank’s five-year strategic plan, designed to establish it as Africa’s premier gateway to the global market.
She said: “This proposed acquisition marks a significant step in the execution of our five-year strategic plan aimed at positioning the Bank as Africa’s Gateway to the World.
“The deal with NBK, a historically strong and well-known bank in Kenya with a balance sheet in excess of US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market.
“We remain confident that our investments towards diversifying and strengthening the Bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups.”
It would be recalled that in 2019, this Nigerian financial institution acquired Transnational Bank Limited in Kenya.
