Centum Investment Company Plc has signed an agreement with Access Bank Plc to sell its entire equity stake in Sidian Bank Limited (‘Sidian’) for KES4.3billion. Centum holds 83.4% of the issued shares of Sidian, directly in its own name and indirectly through its wholly-owned subsidiary, Bakki Holdco Limited.
It is expected that in due course, Sidian will be merged with Access Bank’s subsidiary in Kenya to create a stronger banking institution positioned to serve
the Kenyan market. The completion of the transaction is subject to receipt of customary regulatory approvals in Nigeria
Sidian is a leading SME and trade finance bank that has grown its Balance Sheet by over 70% from KES 19 billion in December 2012 to KES 43 billion as of March 2022 after Centum’s investment. The robustness and resilience of Sidian’s Balance Sheet have enabled it to deliver high impact services to its clientele.
Additionally, Sidian’s profitability has improved since 2019, with a record profit of over 486 million generated in 2021 while the NPL Ratio improved from 20.6 per cent in 2017 to 11.7 per cent as of March 2022, comparing favourably to Kenya’s current national average of 14 per cent thanks to a strong and experienced management team, who have driven the business to meet ambitious strategic targets whilst actively minimizing risks and winning several awards, the most recent of which include Best Bank in Customer Satisfaction Tier III by Think Business Banking Awards 2021: Best Bank in Digital Banking 1st Runners Up, Best Bank in Internet Banking 2nd
Runners Up and Best Bank in Mobile Banking 2nd Runners Up.
Speaking on the proposed transaction, Centum’s CEO, Dr James Mworia, said, “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. It advances Centum’s vision to be Africa’s foremost investment channel and bolsters our track record of attracting foreign investors into Kenya and the region to invest in extraordinary enterprises. The proceeds from the sale will
enable Centum to continue investing across strategic sectors in Kenya and the East African region.
We are particularly pleased to be exiting Sidian at a price which represents a 59 per cent premium to the book value and confirms the deep discount embedded in the valuation of the assets in our book.” Commenting on the transaction, the CEO of Access Bank, Mr Roosevelt Ogbonna said, “The
the transaction builds on our earlier acquisition of former Transnational Bank Plc (now Access Bank Kenya) and underscores our drive to strengthen our presence in Kenya which is a key African market that fits into our core strategic focus for geographic earnings, and growth and diversification. 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, by leveraging our presence in key global trade corridors and the broader East African Community and COMESA regions. The proposed combination with Access Bank Kenya would undoubtedly catapult us to a strong Tier 2 bank contender in the Kenyan market with enhanced capacity to play a more impactful role in the growth of the Kenyan economy and deliver increased profitability to our shareholders.”