Access Bank Closing In On Deal To Buy Another Bank, CEO Speaks
- Access Bank is reportedly nearing the completion of a deal to acquire National Bank of Kenya 100%
- The bank deal, which was first announced in March 2024, is now set to be completed and formalised
- Access Bank's deal with the Kenya bank will further expand its market share in retail and digital banking across Africa
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Access Bank, one of Nigeria's leading financial institutions, is on the verge of completing the takeover of the National Bank of Kenya (NBK) subject to regulatory approval from the Central Bank of Kenya (CBK) and the Competitions Authority of Kenya (CAK).
Access Bank and KCB Group, the owner of NBK in March 2024, signed a binding agreement for the acquisition, which is 1.25x of the National Bank of Kenya's book value.
Source: Getty Images
NBK's book value as of 2023 was out at $79.77 million, meaning Access Bank could pay around $100 million.
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Access Bank to take over National Bank of Kenya
In the latest development, Joseph Kinyua, KCB Group chairman, during the company's H1 2024 earnings call on Wednesday, August 21, 2024, was quoted as saying:
"I am pleased to inform you that the process of Access Bank acquiring 100% shareholding in National Bank of Kenya is nearing completion, only awaiting the required regulatory approvals, for which we believe we will be concluding soon."
Also, TechCabal quoted Paul Russo, KCB Group chief executive, as saying:
"We are on the tail end of the process. I want to acknowledge and make a special mention of the contribution of the National Bank team, it’s not the easiest of a performance environment as it is in the market, and when you have the uncertainty of a transfer and you continue to perform, you truly deserve a special mention."
Access Bank CEO speaks on deal with KCB Group
Commenting on the transaction, Roosevelt Ogbonna, Managing Director/Chief Executive of Access Bank Plc, said in March that it represents an important milestone for the Bank as it moves us closer to the achievement of its five-year strategic plan through increased scale in the Kenyan market.
He said:
"We are building a strong and sustainable franchise to support economic prosperity, encourage African trade, and advance financial inclusion, thereby empowering many to achieve their financial dreams.
"Trade flows in East Africa revolve around key trade corridors, with Kenya being a key player in the region.
"With the African Continental Free Trade Agreement, these corridors will continue to expand and by deploying our best-in-class financial solutions, we are strategically positioned to deliver sustainable value for our stakeholders.
"The consolidation in Kenya will support the realisation of our aspiration to be Africa’s Payment Gateway to the World. Subsequent to the completion of the transaction, NBK would be combined with Access Bank Kenya Plc to create an enlarged franchise in the pursuit of our strategic objective for the Kenyan and East African markets.”
Why Ecobank, Access Bank's ATMs, transfer won't work
Legit.ng reported that Ecobank and Access Bank have announced scheduled system maintenance, temporarily disrupting certain banking services.
The banks stated that customers may experience difficulties conducting transactions during this period.
The two banks have apologised and assured customers that services will be fully functional after the system maintenance.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
