Access Holdings has announced its plans to acquire the National Bank of Kenya Limited (NBK). This acquisition which depicts its commitment to expansion and strategic growth, marks the first major deal for Access Holdings since the unfortunate passing of Herbert Wigwe, the former Group Managing Director/CEO of Access Bank Plc.
There had been an initial announced sale of NBK by KCB Group Plc, Kenya’s largest commercial bank. According to a corporate disclosure on the NGX website, Access Bank Plc, the leading subsidiary of Access Holdings, will acquire the entire issued share capital of NBK from KCB. This move is in alignment with Access Bank’s strategic expansion initiative, aiming to solidify its presence in the Kenyan market.
Bolaji Agbede, the Acting Group CEO of Access Holdings Plc, expressed his enthusiasm for the acquisition, stating, “This 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 over US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market.”
He added, “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.” This acquisition is a testament to Access Corporation’s continued commitment to an aggressive growth model, even in the wake of Herbert Wigwe’s demise.
What you should know about NBK
However, it’s important to note that NBK reported a third-quarter loss of about Ksh 3 billion ($22.5 million) in September 2023, with a net equity of Ksh 10.6 billion ($79.6 million) at the end of the same period.
The bank also carries a retained loss of about Ksh 7.9 billion ($59.3 million). Despite these challenges, Access Holdings sees this acquisition as a strategic move to enhance its footprint in the East African market and beyond.
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