Shareholders of KCB Group have approved the proposed acquisition of the DRC-based lender Trust Merchant Bank SA (TMB).
At the Extra Ordinary General Meeting (EGM) shareholders gave their nod to enable the bank to accelerate the acquisition process.
“The approval of the transaction demonstrates the confidence our shareholders have in the financial and strategic benefits of the transaction and the value it provides our regional clients and communities,” said KCB Group CEO Paul Russo.
“The transaction is expected to close before the end of the year, subject to regulatory approvals and other customary closing conditions.”
The deal will see KCB compete with Equity, which entered the DRC in 2015 through a buyout of ProCredit Bank and increased market share in 2020 after acquiring another lender – Banque Commerciale du Congo (BCDC).
KCB has operations in Rwanda, Burundi, Tanzania, Uganda, and South Sudan, wants to acquire an 85 per cent stake in TMB and plans to buy the remaining shares within two years.
TMB is one of DRC’s largest banks, with Ksh181.5 billion ($1.5 billion) in total assets.