KCB Group Plc Thursday said it has signed a definitive agreement with Atlas Mara to acquire Banque Populaire du Rwanda Plc (BPR) and African Banking Corporation Tanzania (BancABC).
The proposed transaction will increase the bank’s regional footprint, as the bank group explores new group opportunities.
In the agreement, KCB will acquire 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.
“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,” KCB Group CEO and MD Joshua Oigara said.
KCB expects the BPR acquisition to double its market share, making it the second-largest bank in Rwanda behind the Bank of Kigali. Similarly, the Tanzania merge will bring its Tanzania subsidiary among the top ten banks, integrating its in-house retail and corporate banking franchise with BancABC’s retail and commercial operations.
According to Bloomberg, the total combined value for the two units will be about $40 million, split at $32 million for the Rwandan unit and $8m for Tanzania.
“The board is committed to exploring all avenues to ensure our core franchise is positioned to weather this downturn,” Atlas Mara’s Chairman Michael Wilkerson said in a separate statement.
“The transaction fits within the group’s expansion strategy and will see us increase our market share and distribution network across Rwanda and Tanzania,” KCB’s CEO said.