The Kenya Commercial Bank (KCB) has announced its planned acquisition of Rwandan Bank, Banque Populaire du Rwanda PLC (BPR)- for a 62.06 per cent stake.
The share is currently held by Atlas Mara Ltd, a financial services holding company formed to undertake the acquisition of target banks in Africa.
In a public notice dated November 25, KCB made the announcement.
“On 25 November 2020, KCB entered into a share purchase agreement (Rwanda Agreement) with, inter alia Atlas Mara Limited (ATMA) and Atlas Mara Mauritius Limited (AMM), for the purchase of 62.06% of the issued share capital of Banque Poputaire Du Rwanda PLC, a company incorporated in Rwanda with registration number 100162830,” the public notice read.
KCB which tops as the Kenyan lender in assets in the notice said that it will pay cash consideration for the BPR shares determined based on the net asset value of BPR at the completion of the transaction and using a price to book multiple of 1.09 times.
Further, the bank is mulling making an offer to the remaining shareholders of BPR to acquire additional shares from the remaining shareholders. KCB will offer the same acquisition price applicable to the shares to be acquired from AMM.
“The Rwanda Agreement is subject to conditions that are customary for transactions of this nature including receipt of shareholders approvals and all regulatory approvals from, amongst others, the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission and the Capital Markets Authority,” adds the notice.
Once the acquisition is complete, BPR will become a subsidiary of KCB which will be integrated with KCB’s existing subsidiary in Rwanda.
KCB also made public of its planned acquisition of 100 per cent stake of the African Banking Corporation Ltd (ABC Tanzania) whose headquarters are in Gaborone, Botswana.
“On 25 November 2020, KCB also entered into Id a share purchase agreement with, inter alia. ABC Holdings Limited (ABCH) and ATMA for the purchase of 96.6% of the issued share capital of African Banking Corporation Tanzania Limited (ABC Tanzania).
“KCB also separately intends to make an offer to Tanzania Development Finance Company Limited for the purchase of the other 3.4% of the issued share capital of ABC Tanzania (together “Tanzania Agreement”),” the lender said.
On ABC Tanzania, KCB has a cash consideration to be determined based on the net asset value of ABC Tanzania at the completion of the transaction and using a price to book multiple of 0.42 times.