News

Access Bank to acquire National Bank of Kenya from KCB Group

 

Access Holdings says its subsidiary, Access Bank, has
entered a binding agreement to acquire National Bank of Kenya (NBK) from KCB
Group Plc, to boost its presence in the East African market.

 

This is the second acquisition in Kenya for the Nigerian
lender after acquiring Transnational Bank Ltd. in 2019.

 

In a statement filed on the Nigerian Exchange Limited (NGX),
on Wednesday, Sunday Ekwochi, Access Holdings’ secretary, said the completion
of the deal is subject to regulatory approvals from central banks in Kenya and
Nigeria.

 

“Access Holdings Plc (“Access Holdings”) today announces
that its flagship subsidiary, Access Bank Plc (“Access Bank” or “the Bank”) has
entered into a binding agreement with Kenyan-based KCB Group Plc (“KCB”) for
the acquisition of the entire issued share capital of National Bank of Kenya
Limited (“NBK” or ‘the Target’’) from KCB. (‘the Transaction’) KCB is also the
holding company of KCB Bank Ltd, Kenya’s largest commercial bank,” the company
said.

 

 “The Transaction is
in furtherance of the bank’s African expansion strategy and will reposition it
as a stronger and significant player in the Kenyan market whilst serving as a
regional hub for our East African bloc anchored by a solidified balance sheet.

 

“The parties will be working together in the coming months
to fulfil the conditions precedent relating to the Transaction, which include
the regulatory approvals of the Central Bank of Nigeria and the Central Bank of
Kenya.

 

“Sequel to the completion of the Transaction, the Target
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.”

 

Commenting on the transaction, Bolaji Agbede, acting group
chief executive officer of Access Holdings, said the proposed acquisition marks
a significant step in the execution of our five-year strategic plan aimed at
positioning the bank as Africa’s gateway to the world.

 

“The deal with NBK, a historically strong and well-known
bank in Kenya with a balance sheet in excess of US$1.1 billion, presents a
compelling opportunity to scale up our growth in the East African market,”
Agbede 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.”

 

Access Holdings said it will keep the market updated on the
progress of the transaction.

 

Meanwhile, on January 17, Access Bank entered an agreement
to acquire a majority stake in Finance Trust Bank Limited (FTB) in Uganda.

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