Access Bank Confirms Acquisition Deal with National Bank of Kenya, Valued at Approximately $100 Million

Access Bank has officially confirmed its agreement to acquire the National Bank of Kenya (NBK) after weeks of speculation.

The transaction, subject to approval from regulators in Nigeria and Kenya, marks a significant move for both banks.

Valuation and Financial Details

Access Bank will acquire NBK from KCB Group at a valuation of 1.25 times the bank’s book value. With NBK’s book value reported at $79.77 million in 2023, the acquisition is estimated to be valued at around $100 million.

However, financial experts caution that the final figure may vary from this initial estimate.

Historical Context and Previous Acquisitions

This acquisition aligns with Access Bank’s previous expansion efforts in Kenya.

In 2020, the bank acquired Transnational Bank for $12.8 million, followed by the acquisition of 83% of Sidian Bank in 2022 for $37 million, demonstrating its commitment to the East African market.

Regulatory Approval and Timeline

The acquisition process is expected to take between six to nine months to complete, pending regulatory approvals from the Central Bank of Nigeria and the Central Bank of Kenya.

Both Access Bank and NBK are committed to fulfilling the necessary conditions for the successful completion of the transaction.

Expansion Strategy and Capital Injection

Access Bank’s acquisition of NBK will significantly expand its presence in Kenya, leveraging NBK’s nationwide network.

However, the Nigerian lender is also prepared to inject additional capital into NBK to support its growth and operational needs.

Strategic Vision and Growth Plans

KCB Group, which acquired NBK in 2019, has worked to enhance NBK’s performance and ensure compliance with minimum capital requirements.

The acquisition aligns with Access Bank’s growth strategy, emphasizing both organic and inorganic expansion plans to increase shareholder value and sustain long-term growth.

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