A Nigeria tycoon has taken over the majority stake of a Kenyan bank, Transnational Bank whose majority shares were held by close associates of former and deceased President Daniel Moi.
Moi kicked the bucket in February this year.
Access Bank, the largest bank in Nigeria, founded and headed by Herbert Wigwe bought a 97% stake of Transnational Bank.
Interestingly, Wigwe acquired the stake by paying in cash.
“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 according to Business Daily.
With the takeover by the Nigerian lender, it is expected that Transnational Bank’s market shares will increase from the 0.25 percent in December 2018.
Moi associates, Joshua Kulei who held 23.03 percent stake; former minister Simeon Nyachae (4.11%) and former Vice President George Saitoti (2.79%) will take up the Sh1.4 billion payout.
At the end of March, a valuation of returns to Transnational Bank shareholders indicated that a sale of the stake would amount to Ksh1.82 million, all assets pooled together and debts paid off.
However, the Ksh1.4 billion sale is a discounted price.
Transnational Bank has 28 branches in Kenya and has in existence for 36 years.
Before the payout, the Competition Authority of Kenya (CAK) and the Central Bank of Kenya (CBK) in early January endorsed the deal.
With this acquisition, Access Bank adds to its wealth of Ksh1.17 trillion.
Access Bank has its roots in eight African countries, one in the UK and offices in China, UAE and India.
With its acquisition of Transnational Bank, it becomes the third Nigerian entity to penetrate the East African financial market.