Access Holdings Plc says its subsidiary, Access Bank Plc, is in the process of acquiring the entire issued share capital of National Bank of Kenya Ltd. (NBK).
Sunday Ekwochi, the bank’s Company Secretary, said this in a notification sent to the Nigerian Exchange Ltd. (NGX) on Wednesday in Lagos.
Ekwochi stated that the bank had entered into a binding agreement with Kenyan-based KCB Group Plc (KCB) for the acquisition of NBK from KCB.
He said KCB is also the holding company of NBK, which is Kenya’s largest commercial bank.
According to him, the transaction is in furtherance of the bank’s African expansion strategy and will reposition it as a stronger and more significant player in the Kenyan market.
Ekwochi said this would also serve as a regional hub for Access Bank’s East African bloc, anchored by a solidified balance sheet.
“The parties will be working together in the coming months towards fulfilling the conditions precedent relating to the Transaction.
“This includes the regulatory approvals of the Central Bank of Nigeria(CBN) and the Central Bank of Kenya,” he said.
According to him, sequel to the completion of the transaction, NBK would be combined with Access Bank Kenya Plc.
Ekwochi explained that this would create an enlarged franchise in the pursuit of Access Bank’s strategic objective for the Kenyan and East African markets.
Commenting, Bolaji Agbede, Acting Group Chief Executive Officer(GCEO) of Access Holdings Plc said the proposed acquisition marks a significant step in the execution of the bank’s five-year strategic plan aimed at positioning it as Africa’s Gateway to the World.
Agbede noted that the deal with NBK, a historically strong and well-known bank in Kenya with a balance sheet above $1.1 billion, presents a compelling opportunity to scale up Access Bank’s growth in the East African market.
She said: ”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.
“We will keep the market updated on the progress of the Transaction.”
Access Holdings Plc operates through a network of more than 600 branches and service outlets, spanning three continents, 18 countries and over 60 million customers.
The company serves its various markets through four subsidiaries across the banking, payment, pension administration and insurance sectors through four operating companies.