The firms failed to wrap up the deal before the deadline. Credit: Towfiqu barbhuiya on Unsplash.

Nigerian lender Access Bank’s plan to buy a majority stake in a Kenyan rival has fallen through as the parties failed to close the deal before the deadline.

In June 2022, Access Bank signed a binding agreement with Kenya-based Centum Investment for the acquisition of Centum’s 83.4% stake in Sidian Bank. 

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Under the share purchase agreement (SPA), the completion of the share sale was subject to conditions, which were meant to be met by the ‘Long Stop Date’.

“Despite the support and guidance of the Central Bank of Kenya, the Long Stop Date reached before the conditions to the SPA were fulfilled, meaning the SPA terminated and ceased to have force and effect. Further, Centum was not able to reach acceptable terms with Access Bank PLC for extension of the SPA and therefore opted not to pursue extension of the same,” Centum said in a statement. 

The termination of the deal means that Centum will continue to be a majority shareholder of the Kenyan bank. 

Centum Group CEO James Mworia said: “The lapse of this agreement means that Centum continues to work with the management of the Bank on maximising value to customers and all our stakeholders.

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“Sidian is a profitable bank with a well cut out niche market that makes it one of the choice assets in Centum’s portfolio.”

Meanwhile, Access Bank has stated that it is still committed to expanding its brand in Kenya and the larger East African Community.

The Nigerian lender said it will keep exploring a range of organic and inorganic options to increase its market position there.