KCB Group has entered into a sale agreement with Atlas Mara (ATMA) that will see the Kenyan lender acquire the latter’s banking operations in Rwanda and Tanzania.
Under the deal, KCB will acquire a 62.06pc stake in Banque Populaire du Rwanda Plc (BPR) and a 100pc stake in African Banking Corporation Tanzania Limited (BancABC) from ATMA in Rwanda and Tanzania, respectively.
In a statement made Thursday, KCB Group CEO Joshua Oigara said the deal will help strengthen the lender’s business footprint in the region.
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 organisation.
“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 Oigara.
“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 covid-19 macroeconomic recovery” he added.
KCB Group, currently has a presence in six countries and a representative office in Ethiopia.
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