Kenya’s Centum Investment Co. Plc said on Tuesday it had agreed to sell its 83.4% stake in Kenya’s Sidian Bank to Nigeria’s Access Bank for 4.3 billion shillings ($36.8 million).
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,” James Mworia, Centum’s chief executive officer, said.
If the transaction goes through, it will be the second acquisition in Kenya for Access Bank, which acquired Transnational Bank, now called Access Bank Kenya, in 2020.
Sidian Bank Group, which focuses on lending to small and medium-sized businesses and trade finance, had total assets of 43.2 billion shillings at the end of March.
Centum, which invests in listed firms and private companies, says it had assets worth about $400 million at the end of March.
Access Bank, with operations across three continents and 17 countries, had total assets of about $28.8 billion at the end of March.
“Through this transaction and the subsequent merger with Access Bank Kenya, we will be well placed to promote regional trade finance and other cross border banking services,” Roosevelt Ogbonna, Access Bank’s CEO, said.