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Nigeria’s Access Holdings to acquire National Bank of Kenya Limited

Published

8 months ago

March 20, 2024

In its first significant acquisition since former CEO, Herbert Wigwe’s passing last month, Access Holdings of Nigeria has declared its intention to purchase the National Bank of Kenya following KCB’s declaration of sale of the National Bank of Kenya.

Regarding the corporate disclosure available on the NGX website, KCB would be the buyer of National Bank of Kenya Limited’s full-issued share capital by Access Bank Plc, the primary subsidiary of Access Holdings.

Access Bank said that it has signed a legally binding contract with KCB Group Plc, a company based in Kenya, to purchase National Bank of Kenya Limited’s issued share capital, often known as “the Target” or “NBK,” from KCB. Kenya’s biggest commercial bank, KCB Bank Ltd., is likewise held by KCB.

According to the bank, the acquisition is consistent with Access Bank’s strategic expansion goal and positions the company for further growth in the Kenyan market. Bolaji Agbede, Access Holdings Plc’s acting group CEO, said in a statement regarding the deal.

“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 above US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market.

We remain confident that our investments in diversifying and strengthening the bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups.”

This will be Access Corporation’s first acquisition since the demise of its former GMD/CEO Herbert Wigwe, suggesting the bank will continue with its inorganic, aggressive growth model.

In September 2023, the Kenyan bank announced a third-quarter loss of over Ksh 3 billion ($22.5 million). At the end of September 2023, its net equity was Ksh 10.6 billion ($79.6 million).

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South Africa: Petrol, diesel prices to rise on Wednesday. Here’s why

Published

13 hours ago

November 4, 2024

Ifeoluwa Dada

Following an increase in the price of oil due to the crisis between Iran and Israel, petrol and diesel prices will be raised in South Africa on Wednesday.

The cost of unleaded petrol will go up by 25 cents per gallon for both 93 and 95. Depending on the sulphur concentration, diesel’s wholesale price will increase by either 20 or 21 cents per litre.

Illuminating paraffin’s wholesale price will increase by 21 cents per litre, and the maximum retail price of LP gas will rise by 36 cents per kilogramme.

Fuel prices dropped to their lowest points since February 2022, when Russia’s invasion of Ukraine disrupted supply chains and limited the import of Russian crude oil, sending oil prices to multi-year highs. This was at the beginning of October.

The Department of Mineral and Petroleum Resources stated on Monday that the average price of Brent Crude oil rose from $72.82 per barrel to $75.07 over the last month, following several months of pressure on the price of oil.

“The main contributing factor is the continued conflict in the Middle East and the stand-off between Iran and Israel,” the department said in a statement.

Investors are worried that an Israeli strike on Iran’s oil infrastructure will not only remove Iranian crude from the market but also incite a larger confrontation including other oil exporters in the region.

Since oil is priced in dollars, the rand exchange rate also affects fuel prices in South Africa.

According to the department, the rand averaged R17.53/$ over the previous month, down from R17.68 in September. However, this was insufficient to offset the rising price of oil.

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Fitch upgrades Egypt’s credit rating to ‘B’

Published

2 days ago

November 2, 2024

Ifeoluwa Dada

Fitch, a credit rating agency has upgraded Egypt’s rating from “B-” to “B” citing tighter monetary circumstances and the country’s improved financial standing thanks to a number of foreign investments and assistance.

“Egypt’s external finances have been bolstered… FX buffers have recovered, and we have somewhat greater confidence that the more flexible exchange rate policy will prove more durable than in the past,” Fitch said, as it also assigned Egypt a stable outlook.

As it attempts to recover from a protracted economic crisis that has resulted in record inflation, a growing debt load, and significant currency devaluations over the last two years, the North African country has been looking for significant investments.

In order to stabilise its economy, Egypt obtained a $8 billion loan package from the International Monetary Fund (IMF) this year, along with a $35 billion real estate investment package from Abu Dhabi and about $1 billion from the EU.

The IMF insisted that the loan amount was suitable, despite Egyptian President Abdel Fattah al-Sisi’s suggestion last month that his government should reevaluate the agreement in light of the country’s growing regional concerns.

Fitch also cautioned on Friday that Egypt faces a significant risk from a further escalation of the regional conflict.

Yemen’s Houthi attacks on Red Sea ships have caused trade to be rerouted from the Suez Canal, which has negatively impacted tourism and Egypt’s revenue stream. There are also dangers associated with the larger Middle East conflict.