Centum Investment Company Fails to Sell Stake in Sidian Bank

In a surprising turn of events, the Centum Investment Company has failed to consummate the sale of its 83.4% stake in Sidian Bank to Access Bank PLC. The company cites failure to secure all prerequisite conditions as agreed and says that the parties have failed to reach acceptable terms for the transaction. The deal was first announced in October 2019 and was expected to be completed by mid-2020, however it is now clear that this will not be happening. According to a statement released by Centum, they were unable to reach an agreement with Access Bank on certain conditions which would have allowed them to proceed with the sale. The failed transaction has raised questions about why it could not be completed despite being so close to completion, with some speculating that there may have been issues regarding regulatory approval or other factors that led both companies away from finalizing the deal. Centum’s CEO James Mworia had previously stated that “the proposed transaction provides an opportunity for both parties involved and is consistent with our long-term strategy of creating value for our shareholders” but it appears those plans are now on hold indefinitely due to this latest development. It remains unclear what impact this will have on both companies going forward, but one thing is certain - investors will be closely watching how both companies respond in light of this news. With Access Bank already having invested heavily into Sidian Bank over recent years, they may decide against pursuing any further investments until more clarity can be provided on why this deal fell through at such a late stage.