BY OUR REPORTER
KCB Groups has inked a deal with Atlas Mara Limited to buy off two banking institutions in Rwanda and Tanzania, officials have revealed.
Atlas Mara Limited, formerly known as Atlas Mara Co-Nvest Limited is a London listed financial services holding company that was formed to undertake the acquisition of target banks in Africa.
The deal will see KCB Group acquire Atlas Mara’s 62.06% shareholding in Banque Populaire du Rwanda Plc (BPR). In Tanzania, the Kenyan lender will acquire 100% of Atlas Mara’s indirect interests in African Banking Corporation (BancABC).
A statement by Atlas said, the actual cash consideration payable by KCB will be determined based on the final book value of the two banks at completion of the transactions. The transactions are expected to close during the first half of 2021, assuming regulatory approvals are received by then.
Michael Wilkerson, Executive Chairman of Atlas Mara, said, “as previously reported, in 2019 the Board of Atlas Mara commenced a review of strategic options. This included a review of each banking operation, and potentially partnering in or exiting markets where we do not have a clear near-term path to acceptable scale and profitability. As part of this review the Company evaluated indications of interest from a number of potential partners and transaction counterparties.”
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“BPR and BancABC Tanzania have been resilient and innovative during this uniquely challenging year, and we thank the teams for their hard work in continuing to serve our customers. With KCB’s existing presence in these markets and strong banking capabilities in East Africa, the merged banks in each market can build on the significant progress made in recent years and be well positioned to succeed in the macroeconomic recovery to come.”
KCB Groups chief executive Joshua Oigara told the East Africa that the transaction is part of KCB’s “ongoing strategy to explore opportunities for new growth while investing in and maximising returns from the Group’s existing businesses.”
“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.”