in ,

KCB To Solidify Footing In Rwanda, Tanzania With Acquisition of Two Local Lenders

[IMAGE/ COURTESY]

The Kenya Commercial Bank (KCB) has announced acquisition of a 62.06 percent stake in Rwandan Bank, Banque Populaire du Rwanda PLC.

The share is currently held by Atlas Mara Ltd, a financial services holding company formed to undertake the acquisition of target banks in Africa.

“On 25 November 2020, KCB entered into a share purchase agreement (Rwanda Agreement) with, inter alia Atlas Mara Limited (ATMA) and Atlas Mara Mauritius Limited (AMM), for the purchase of 62.06% of the issued share capital of Banque Poputaire Du Rwanda PLC, a company incorporated in Rwanda with registration number 100162830,” KCB said in a public notice.

KCB will pay a cash consideration for the BPR shares determined based on the net asset value of BPR at completion of the transaction and using a price to book multiple of 1.09 times.

Read: KCB Branch Manager Sayid Ibrahim Acquitted in Ksh26 Million Wajir County Embezzlement Suit

In addition, KCB intends to make an offer to the remaining shareholders of BPR to acquire additional shares from the remaining shareholders. KCB will offer the same acquisition price applicable to the shares to be acquired from AMM.

“The Rwanda Agreement is subject to conditions that are customary for transactions of this nature including receipt of shareholders approvals and all regulatory approvals from, amongst others, the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission and the Capital Markets Authority,” adds the notice.

Arise BV holds 14.6 percent stake while minority shareholders have a stake of 23.3.

Upon completion, BPR will become a subsidiary of KCB, to be Integrated with KCB’s existing subsidiary in Rwanda.

Read: ABC Bank On CBK’s Radar Over Money Laundering Claims

In Tanzania, KCB has also announced plans to acquire 100 percent stake of the African Banking Corporation Ltd (ABC Tanzania).

ABC is a pan-African financial services provider, headquartered in Gaborone, Botswana.

“On 25 November 2020, KCB also entered into Id a share purchase agreement with, inter alia. ABC Holdings Limited (ABCH) and ATMA for the purchase of 96.6% of the issued share capital of African Banking Corporation Tanzania Limited (ABC Tanzania). KCB also separately intends to make an offer to Tanzania Development Finance Company Limited for the purchase of the other 3.4% of the issued share capital of ABC Tanzania (together “Tanzania Agreement”),” the lender said.

KCB will pay a cash consideration for the Tanzania Transaction determined based on the net asset value of ABC Tanzania at completion of the transaction and using a price to book multiple of 0.42 times.

Email your news TIPS to news@kahawatungu.com or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Nelson Havi

Motion Filed To Impeach LSK President Nelson Havi

Morans Return To Court Against Angola After Senegal Disappointment