KCB Group PLC announces plan to buy 62.06% stake in Banque Populaire du Rwanda Plc (BPR) from current major shareholder Atlas Mara Ltd.
KCB Group Plc (KCB) and Atlas Mara (ATMA) have signed a definitive agreement which will see East Africa’s biggest Bank by assets increase its footprint within the region.
This is through the acquisition of a 62.06% stake in Banque Populaire du Rwanda Plc (BPR) and a 100% stake in African Banking Corporation Tanzania Limited (BancABC) from ATMA in Rwanda and Tanzania, respectively.
The successful completion of the transaction is subject to obtaining shareholder approval and to obtaining regulatory approvals in the respective countries.
KCB Group CEO and MD Joshua Oigara said the transaction was part of KCB’s ongoing strategy to explore opportunities for new growth while investing in and maximizing returns from the Group’s existing businesses.
The acquisition, he added, will buttress the Group’s leadership position and give it a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region while building a robust and financially sustainable organization.
“The transaction fits within the Group’s expansion strategy and will see us increase our market share and distribution network across Rwanda and Tanzania and improve our operating leverage by enabling us to deliver our existing product offerings to a wider base of customers while positioning the bank for sustainable growth in the long-term, ” said Mr. Oigara.
“Once the transaction is completed, the Group’s Rwanda and Tanzania businesses are expected to have stronger financial credentials to support business growth in the post covid-19 macroeconomic recovery” he added.
Upon completion of the acquisition, the resultant KCB Group business is expected to see KCB double its market share to become the second largest bank in Rwanda and solidify KCB Group’s leadership position. (End)