Transnational bank owners are set to earn an additional Sh371 million from Access Bank (Nigeria).
Access Bank in February paid Sh1.4 billion from 99.98 per cent of the bank; acquiring assets worth Sh.10.2 billion.
The Nigerian top lender has revealed in regulatory filings in Lagos that the extra amount will be paid in the next two years. This pushes the total payout for the bank to Sh1.5 billion.
In July, it was reported that the price of SH1.4 billion was a discount given that shareholders’ fund– the amount of money Transnational could return to shareholders if all assets were converted to cash and all debts paid off — stood at Sh1.82 billion at the end of March.
Top owners of the 36-year-old Kenyan bank with 28 branches were companies owned by close associates of the late Moi, including Joshua Kulei, Simeon Nyachae and the former Vice President George Saitoti.
The Competition Authority of Kenya (CAK) and the Central Bank of Kenya (CBK) early January endorsed the deal that gives Access Bank a 97 percent stake in Transnational. The bank is the largest in Nigeria with assets worth Sh1.17 trillion.
Access Bank Global CEO Herbert Wigwe had said the lender would buy in cash and inject fresh capital into Transnational.
“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,” Mr Wigwe said in a recent transcript of a conference call.
In August, a hacker took down the entire system of the Transnational Bank and stole data.
In the data posted online, the hacker revealed entire email and login credentials of the bank staff.
That time, Transnational Bank reported a downtime, with many clients complaining about lost money.
“Dear Customer, we are pleased to inform you that the service downtime experienced on our online banking platforms has been restored. We regret the inconveniences caused. We thank you.”, they wrote on their social media platforms.
Access Bank had an asset base of Sh.1.2 trillion as of the end of 2019. The lender has over 600 branches across 12 countries in three continents in addition to having 36 million customers and representatives offices in Lebanon, China and India.
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