Close associates of former President Daniel Moi will in coming weeks receive an additional Sh390 million for selling a majority stake in Transnational Bank to Nigeria’s Access Bank over two years ago.
Access Bank acquired a 99.98 percent stake of Transnational Bank and paid Sh1.21 billion in cash in early 2020 for the deal valued at Sh1.56 billion.
Close associates of former President Daniel Moi will in coming weeks receive an additional Sh390 million for selling a majority stake in Transnational Bank to Nigeria’s Access Bank over two years ago.
Access Bank acquired a 99.98 percent stake of Transnational Bank and paid Sh1.21 billion in cash in early 2020 for the deal valued at Sh1.56 billion.
They were to receive the balance of Sh390 million two years after the first payout, signaling it will be due in coming weeks
“…a deferred payment of N1,408,602,500 to be made to shareholders at the expiration of 2 years,” said Nigerian lender says in regulatory filings published March 29.
TOP OWNERS
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.
Access Bank, owned by Dr Wigwe, revealed in injected Sh3.2 billion additional capital in Transnational last year as it seeks a return to profitability.
Access Bank said earlier the entire deal was supposed to cost Sh1.62 billion (₦N5.63 billion) but it received a discount of 4.24 percent.
Sovereign Trust, a company associated with Mr Kulei, a former aide of the ex-President, held 23.03 per cent shareholding in Transnational.
Simbi Investors, linked with Mr Nyachae, a former Cabinet minister during Mr Moi’s administration, held 8.2 million shares or 4.11 percent of the bank.
Losupuk Ltd, associated with the late Saitoti, holds 2.79 per cent.
The bank’s chairman has been Henry Kiptiony Kiplangat, who is also the vice-chancellor of Kabarak University, an institution owned by the Moi family.
Andre DeSimone, formerly CEO of Kestrel Capital, was also a director at Transnational but retired in December 2018.
Kestrel Capital is linked to the late Nicholas Biwott, who was a powerful minister in the Moi administration.
Other major shareholders are listed as Archers and Wilcock Ltd with a 23.75 percent stake, and Kenyerere Ltd — associated with Jared Kangwana — with a 2.15 per cent stake.
In total, Transnational had 18 corporate shareholders (51.4 percent) and 17 individual shareholders with a stake of 48.6 percent, all locally based.
The small lender started off as Transnational Finance in 1984, a non-bank, deposit-taking institution that also provided hire purchase services and other loans.
INCREASED INTEREST
It established a separate fully fledged bank called Trans National Bank Ltd in 1985. The two financial firms merged in 1996, and Transnational Finance ceased to exist.
The buyout by Access Bank has deepened the presence of Nigerian banks in Kenya, with United Bank of Africa (UBA) and Guarantee Trust Bank already in the market.
The Kenyan banking sector has witnessed increased interest in the last seven years, with mergers and acquisitions happening.
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