Failed Sidian deal won't stop us, says 'hungry' Nigerian lender

People walk along the Sidian Bank branch on Standard Building along Kenyatta Avenue. [Wilberforce Owiri, Standard]

Nigeria's largest lender Access Bank says it is hungry for more acquisitions in Kenya's vibrant banking sector despite its failed deal to take over Centum Investment-owned Sidian Bank.

Access Bank told Standard Business that it's reviewing its list of potential acquisition targets. The lender didn't disclose the names of the targets. The Nigerian lender has been expanding across the African continent to counter stagflation and dollar shortages in Nigeria that have frustrated businesses, shrinking the lending market.

"The bank remains committed to growing its franchise in a safe and sound manner in Kenya and the broader East African Community (EAC) and will continue to explore a variety of organic and inorganic opportunities to grow its market share therein," said the lender in response to queries by Standard Business.

The lender did not provide additional details on why the Sidian Bank deal failed in a decision that will be keenly watched by investors.

On Thursday, Centum said it had ended a pact with Access Bank to sell its 83.4 per cent shareholding in Sidian Bank, as the timeframe for completion of the transaction had lapsed.

In June, Centum announced plans to sell the stake to Access Bank subject to regulatory approval in Kenya and Nigeria.

Centum said in a statement that the planned sale was to be guided by conditions set out in the share purchase (SPA) agreement that were meant to be met by a certain date, known as the 'Long Stop Date'.

"Centum was not able to reach acceptable terms with Access Bank PLC for extension of the SPA and therefore opted not to pursue an extension of the same," Centum said.

Centum had said in November it had expected the sale to be completed in December. The Sh4.3 billion transaction would have been the second acquisition in Kenya for Access Bank, which acquired Transnational Bank, now called Access Bank Kenya, in 2020.

Access Bank acquired a 99.98 per cent stake in Transnational Bank and paid Sh1.21 billion in cash in early 2020 for the deal valued at Sh1.56 billion.

The buyout by Access Bank deepened the presence of Nigerian banks in Kenya, with United Bank of Africa (UBA) and Guarantee Trust Bank already in the market.