KCB BPR BancABC Acquisition: KCB Group is now set to buyout two banks in Rwanda and Tanzania. This is after the lender’s shareholders approved the proposal to acquire up to 100 per cent of the issued ordinary shares in Banque Populaire Du Rwanda (BPR) and a 100 per cent stake in African Banking Corporation Tanzania Limited (BancABC).
The twin acquisitions in Rwanda and Tanzania are part of KCB Group’s ongoing strategy to achieve regional relevance and will increase the brand’s footprint while reinforcing existing market capabilities.
In November last year, KCB and Atlas Mara (ATMA) signed a definitive agreement which would see KCB increase its footprint within the region
“These acquisitions will reinforce the Group’s leadership position and give us a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region while building a robust and financially sustainable and profitable organization for the shareholders,” said KCB Group Chairman Andrew Kairu.
KCB Group chief executive officer Joshua Oigara said the transaction was part of KCB’s ongoing strategy to explore opportunities for new growth while investing in and maximizing returns from the Group’s existing businesses.
The acquisition, he added, will buttress the Group’s leadership position and give it a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region while building a robust and financially sustainable organization.
“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, ” said Mr. Oigara.
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“Once the transaction is completed, the Group’s Rwanda and Tanzania businesses are expected to have stronger financial credentials to support business growth in the post pandemic macroeconomic recovery” he added.