The founders and shareholders of Sidian Bank which was formerly known as K-Rep bank pocketed Sh. 841.66 million in the sale of their stake.
This sale involved the transaction of some 728,525 shares that were equivalent to a 16.57 per cent stake. This stake was sold by Sidian Bank founders to Pioneer General Insurance Limited, Pioneer Life Investments Limited, Wizpro Enterprises Limited, Afrah Limited and Telesec Africa Limited.
According to a financial report by Sidian Bank, the stake was sold off after the investment vehicle that founder K-Rep Bank known as K-Rep Group Limited joined KWA Multi-Purpose Co-operative Limited and nine individuals to offer their shares.
K-Rep had started as a non-governmental organisation before converting to a micro-financier in 1989 and later to a bank in 1999.
It had 37 branches across the country and had Sh. 17.9 billion assets as at September 2014 when it was sold off. In the sale, K-Rep Group Limited sold its 501,430 shares which was equivalent to an 11.4 per cent stake. This sale was valued at Sh. 579.3 million.
At the same time, KWA Multi-Purpose sold its 3.26 per cent stake which was equivalent to 143,376 shares worth Sh. 165.64 million.
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The remaining 9 individual shareholders who included Francis Kihiko, Francis Munyao Kinyumu, Kabiru Kinyanjui, Judith Bahemuka, Sarah Godana, Kimanthi Mutua, Anthony Wainaina, Aleke Dondo and Mwenda Thabiri sold their 83,719 shares which were equivalent to a 1.9 per cent stake at Sh. 96.72 million.
Sidian was acquired by Centum Investments in December 2014 after Centum bought a controlling stake. Centum Investment acquired an additional 66 percent shareholding in K-Rep Bank Limited from several existing shareholders to bring its total stake in K-Rep to 67.54 percent in 2014.
Centum injected Sh. 1.2 billion capital out of the required Sh. 1.6 billion to turn around the bank. In April 2016, the bank rebranded in a restructuring process that cost Sh. 500 million.
The bank went on to attract investment interest from major players including Nigeria’s Access Bank.
However, a proposed acquisition of the bank by Access Bank collapsed in January 2023. Centum disclosed that it terminated the proposed sale of its 83.4 per cent stake in the bank after its request to be paid the entire Sh. 4.3 billion at once was rejected by the Nigeria-based lender.