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KCB Group is in the process of acquiring a 62.06% stake in Banque Populaire du Rwanda Plc, owned by Atlas Mara Group.
KCB Group, a Kenyan-based financial services holding company with a presence throughout the region, and Atlas Mara on Wednesday 25 November 2020 signed a share purchase agreement for the purchase of 62.06 percent of the issued share capital of Banque Populaire du Rwanda.
KCB will pay a cash consideration for the BPR shares determined based on BPR’s net asset value at the end of the transaction.
The New Times understands that KCB Group intends to make an offer to BPR’s remaining shareholders to acquire additional shares from the remaining shareholders and will offer the same acquisition price applicable to the shares to be acquired from Atlas Mara Group, according to a statement. of Grupo KCB.
The process is subject to the approval of various regulatory bodies, including the Central Banks of the two countries, Capital Market Authorities, among others.
Before the new agreement, Equity Bank Group in April 2019 expressed its intention to acquire a 62 percent stake in Banque Populaire du Rwanda Limited (BPR), but in January 2020 it announced the suspension of the process.
BPR Managing Director Maurice Toroitich and KCB Bank Rwanda Managing Director George Odhiambo confirmed the development to The New Times.
Toroitich said that when complete, the two banks will be merged into one entity and BPR will be included in KCB Rwanda’s operations.
“The only thing left is the approval of regulators and shareholders, then KCB will have a plan on how to carry out the merger,” he said.
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The new entity after the merger will be one of the most important players in the local market in terms of clients, assets and national presence.
Odhiambo said the merger will see the bank ranked as the second-largest bank in the country, increasing scale and improving operating leverage to deliver existing retail and wholesale offerings.
“This merger will rank the bank as the second largest bank in the country, increasing our scale and improving our operating leverage by allowing us to deliver existing retail and wholesale offerings to a broader customer base in Rwanda, while also positioning to the bank for long-term sustainable growth, “Odhiambo said.
While the timeline for the process is unclear, Toroitich said the process is expected to be completed quickly.
Toroitich said the development will not interrupt or affect any of the bank’s current ongoing business, including the issuance of loans and credit facilities.
“We continue with everything we have been doing. This is a fusion of growth, not cuts. The intention is to create a bigger business and our clients can look forward to being part of a regional bank,” he said.
