Billionaire Buys Ksh1.4B Kenyan Bank in Cash

  • Access Bank Group Managing Director Herbert Wigwe
    Access Bank Group Managing Director Herbert Wigwe
    File
  • A Nigerian business mogul has completed the acquisition of 97% stake in a Kenyan bank. 

    According to regulatory filings, Access Bank, owned by business mogul Herbert Wigwe completed the acquisition of Transnational Bank worth Ksh1.4 billion.

    Instead of using stock options or assert trade, the businessman decided to buy the bank in cash. 

    Access Bank Group Managing Director (left) Herbert Wigwe
    Access Bank Group Managing Director (left) Herbert Wigwe
    File

    “It will be paid for in cash so we have taken out the existing shareholders and we will basically inject a bit more equity into the institution,” Wigwe said in a conference call.

    Among the top beneficiaries of the buyout include close associates of the late President Daniel Moi. 

    Moi's former assistant Joshua Kulei held 23.03%, former minister Simeon Nyachae held 4.11% while former Vice President George Saitoti held 2.79%.

    The bank’s current chairman is Henry Kiptiony Kiplangat, who also serves as vice-chancellor of Kabarak University.

    Transnational Bank has opened 28 branches across Kenya for the 35 years it has been in operation. 

    Access Bank, which is four years younger than its acquisition, has a total asset base of Ksh1.7 trillion making it the largest bank in Nigeria. 

    It has a presence in eight African countries, one in the United Kingdom, and representative offices in China, the United Arab Emirates, Lebanon, and India.

    Access Bank’s entry into the Kenyan market now brings the total number of Nigerian banks in the East African country to three, as it joins both United Bank of Africa and Guaranty Trust Bank.

    Former Gatanga MP Peter Kenneth also sold his bank Mayfair Bank Limited to Commercial International Bank (Egypt).

    Central Bank of Kenya Governor Patrick Njoroge during a press conference in Nairobi on May 28, 2020.
    Central Bank of Kenya Governor Patrick Njoroge during a press conference in Nairobi on May 28, 2020.
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