Nigeria tycoon Herbert Wigwe has acquired majority shares in Kenyan lender, Transnational Bank.
Wigwe bought a 97 percent stake in Transnational Bank, which was previously held by close associates of former President Daniel Arap Moi, who passed away early this year.
53-year-old Wigwe, who is the founder and head of Access Bank—the largest bank in Nigeria—paid Sh1.4 billion in cash to acquire the stake, Business Daily reports.
“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 is quoted by Business Daily.
The takeover is expected to increase Transnational Bank’s market share, which stood at 0.25 percent as of December 2018.
The shares were held by the following Moi allies; Joshua Kulei (23.03 percent), Simeon Nyachae (4.11%), and former Vice-President the late George Saitoti (2.79%), among others. The 36-year-old bank has 28 branches across the country.
In January, the Competition Authority of Kenya (CAK) and the Central Bank of Kenya (CBK) endorsed the acquisition.
Access Bank, which has operations in eight African countries, one in the UK and offices in China, UAE, and India, becomes the third Nigerian entity to penetrate the East African banking market.