Access Holdings Plc has announced that its subsidiary, Access Bank Plc, is currently in the process of acquiring the entire issued share capital of National Bank of Kenya Ltd. (NBK).
According to Mr. Sunday Ekwochi, the bank’s Company Secretary, the acquisition is a part of the bank’s African expansion strategy and will reposition it as a stronger and significant player in the Kenyan market. The bank has entered into a binding agreement with Kenyan-based KCB Group Plc (KCB) for the acquisition of NBK from KCB, which is also the holding company of NBK, Kenya’s largest commercial bank.
The transaction is expected to serve as a regional hub for Access Bank’s East African bloc, anchored by a solidified balance sheet.
Ekwochi stated that the parties would be working together in the coming months to fulfill the conditions precedent relating to the transaction, which includes the regulatory approvals of the Central Bank of Nigeria (CBN) and the Central Bank of Kenya.
Once the transaction is completed, NBK will be combined with Access Bank Kenya Plc, creating an enlarged franchise in the pursuit of Access Bank’s strategic objective for the Kenyan and East African markets.
This presents a compelling opportunity for Access Bank to scale up its growth in the East African market. The deal with NBK is a historically strong and well-known bank in Kenya with a balance sheet of over $1.1 billion.
Ms. Bolaji Agbede, Acting Group Chief Executive Officer (GCEO) of Access Holdings Plc, commented on the proposed acquisition, saying that it 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. She further added that the bank remains confident that its investments towards diversifying and strengthening the bank’s long-term earnings profile will deliver significant value for its shareholders, customers, and wider stakeholder groups.
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.
