Access Bank Plc has stated that the cancellation of its proposed acquisition of Sidan Bank will have no impact on its efforts to promote regional trade finance and other cross-border banking services in the East African Community (EAC) and wider COMESA region as it strives to become Africa’s gateway to the rest of the world.
The termination terminated Access Bank Plc’s binding agreement with Centum to acquire the entire 83.4 percent shareholding in Sidian Bank Ltd held by the investment company.
To that end, the bank reassured stakeholders of its intention to pursue responsible opportunities to expand its footprint in Kenya, which is East Africa’s largest market and trade corridor
“The bank remains committed to growing its franchise in a safe and sound manner in Kenya and the broader East African Community and will continue to explore a variety of organic and inorganic opportunities to grow its market share therein,” says Sunday Ekwochi, Company Secretary of Access Holdings Plc.
Speaking about the cancellation of the acquisition plan, Ekwochi cited the failure to meet certain requirements as the reason for canceling the proposed acquisition of Sidian Bank.
“The proposed transaction was subject to the fulfillment or waiver of certain conditions prior to the Long Stop date as defined in the transaction agreement,” he said. Although all regulators have been supportive in engagements surrounding the transaction, certain precedent conditions, including those required of Sidian Bank, that were required to prudently complete the transaction have not been met, and the parties have been unable to reach an agreement on the variation of these conditions in a manner that delivers the desired outcome for the parties.”
