KCB Group will seek shareholders’ approval for its proposed acquisition of the Trade Merchant Bank (TMB) in the Democratic Republic of Congo.
The company is holding its extraordinary general meeting on September 21.
On August 2, KCB Group disclosed it had reached a binding agreement to acquire a majority (85 per cent) stake in TMB.
If successful, KCB Group will become the second Kenyan bank in the DRC market after Equity Group.
“This is part of our ongoing strategy to tap into opportunities for new growth while investing in and maximizing returns from the group’s existing businesses,” KCB Group Chairman Andrew Kairu said during the announcement of the binding acquisition agreement.
“It gives us strong headroom to accelerate our growth ambitions to deliver better value for our shareholders and to bolster the push for deeper financial inclusion and social and economic transformation in Africa and beyond.”
The deal comes from KCB’s acquisition of Rwanda’s Bank Populaire Du Rwanda (BPR) in 2021.
“Given the success of BPR, we expect the Trust Merchant Bank (TMB) acquisition to be finalized in FY2021, which should see the Group realize its KES.1.5Tn target asset base,” analysts from Sterling Capital Ltd stated.
KCB Group PLC reported KES 19.6 billion in Profit After Tax (PAT) for HY2022, representing a 28.1% increase compared to HY2021 (KES.15.3 billion) attributable primarily to a 15.7% and 29.7% upsurge in total interest income and non-funded income (NFI) respectively.
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