Atlas Mara Gets Approval To Sell Rwanda Assets to KCB Group

KCB Group Plc more than doubled its profit after tax for the nine months ending September 2021. Net profit stood at KShs.25.2 billion from KShs.10.9 billion a year ago, a 131% jump, driven by higher income and reduced provisions as recovery from the COVID-19 pandemic accelerated in quarter three.

KCB Group Moi Avenue Branch in Kenya. PHOTO | KHUSOKO

Atlas Mara Limited, the sub-Saharan African financial services group, says it has secured regulatory approvals to sell its banks in Rwanda and Botswana.

Kenya’s KCB Group Plc signed a definitive agreement with Atlas Mara to acquire Banque Populaire du Rwanda Plc (BPR) and African Banking Corporation Tanzania (BancABC). 

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.

However, the financial institution listed on the London Stock Exchange still waits for approvals from Tanzania.

“The Company has secured regulatory approval for the transactions with respects to its investments in Rwanda and Botswana, and parties are now in the process of concluding pre-completion conditions. Regulatory approval is pending with respect to the transaction with respect to its investment in Tanzania,” Atlas Mara said in the regulatory filing posted on its website.

KCB expects the BPR acquisition to double its market share, making it the second-largest bank in Rwanda behind the Bank of Kigali.

In June 2020, Equity Group mutually agreed to discontinue discussions with Atlas Mara taking over some of its business units in Rwanda, Zambia, Tanzania and Mozambique.