Access Bank Plc in Final Stage to Acquire National Bank of Kenya
- Posted on March 21, 2024
- Featured
- By PETER AGADA
Access Bank Plc, a subsidiary of Access Holdings Plc, has announced that it has signed a binding agreement with Kenyan-based KCB Group Plc (KCB) to purchase all of the issued shares of National Bank of Kenya Limited (NBK) from KCB.
The National Bank of Kenya (NBK) is one of Kenya's largest banks, with over $1.1 billion in total assets. KCB is also known as the holding company of KCB Bank Ltd., Kenya's largest commercial bank.
The Central Bank of Kenya and Nigeria's (CBN) regulatory approvals are among the transaction requirements the parties will work together to fulfil in the upcoming months.
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Following the transaction's completion, NBK and Access Bank Kenya Plc will merge to form a larger franchise and achieve Access Bank's strategic objective for the Kenyan and East African markets.
In a regulatory filing yesterday, Access Holdings said that the proposed acquisition is a step towards its African expansion strategy and will reestablish Access Bank as a major player in the Kenyan market. It will also serve as a regional hub for the East African bloc, supported by a strong balance sheet.
Access Holdings Plc's acting group chief executive officer, Ms. Bolaji Agbede, stated that the proposed acquisition is a major step towards the group's five-year strategic plan to position 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 over $1.1 billion, presents a compelling opportunity to scale up our growth in the East African market. We remain confident that our investments in diversifying and strengthening the bank's long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups," Agbede said.
The latest transaction follows recent acquisition talks. Access Bank sealed a deal to acquire the majority equity stake of about 80% in Uganda's Finance Trust Bank (FTB).
As part of the agreement, Access Bank will concurrently purchase the shares owned by FTB's institutional investors, who have been looking to sell their stake to a long-term, strategic buyer.
However, the Central Bank of Nigeria (CBN) and the Bank of Uganda must provide their regulatory approvals before the transaction can proceed. After the standard conditions precedent is fulfilled, it is anticipated to close in the year's first half.
Following the anticipated closing of the transaction, Access Bank would own an estimated 80% shareholding in FTB.
Back Story
Access Bank Plc's recent statement revealed that it has signed an agreement with Uganda's Finance Trust Bank (FTB) to buy shares currently held by FTB's institutional shareholders who have agreed to exit as strategic, long-term shareholders.
The transaction, subject to regulatory approvals by the Central Bank of Nigeria (CBN) and Bank of Uganda, is expected to close in the first half of 2024, following the fulfillment of customary conditions precedent as reported by LEADERSHIP.
If this transaction is successful, Access Bank will have a total of 80% shareholding in FTB.
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