KCB enters DRC by acquiring a local bank

KCB Group Chairman Andrew Wambari Kairu. [Wilberforce Okwiri, Standard]

"We are very excited about the opportunities KCB offers in this transaction and we are proud to bring our unique DRC insights and experience to the KCB Group. We believe that by combining our local knowledge and standing with the size and expertise of KCB Group, we should be able to increase market share and shareholder value through unlocking our synergies and business opportunities," said Robert Levy, TMB Chairman.

Earlier, KCB had completed the acquisition of another of Atlas Mara's lenders in Rwanda - Banque Populaire du Rwanda - which saw its assets grow by 15 per cent, or Sh1.12 trillion, in September 2021 compared to Sh972 billion in the same period last year

However, the bank's intention of acquiring African Banking Corporation Tanzania (BancABC Tanzania), also majority owned by Atlas Mara, did not bear fruits after Tanzanian authorities threw KCB's bid into disarray.

KCB has also acquired National Bank of Kenya in an expansion spree that has characterised competition among Kenya's top lenders.

The transaction of TMB is expected to close by the end of the third quarter of 2022, subject to regulatory, shareholders and other approvals.

This will see KCB acquire 85 per cent of the shares in TMB while the existing shareholders will continue to hold the balance for a period of not less than 2 years after which, KCB will acquire their shares.

KCB will pay a cash consideration for the shares determined based on the net asset value of TMB at completion of the proposed transaction, and using a price to book multiple of 1.49.

TMB, a public company limited by shares, is one of DRC's largest banks with $1.5 (Sh178.2) billion in total assets. TMB has a strong offering in Retail, SME, Corporate and Digital banking channels.

It has over 110 branches and numerous agency banking outlets spread across DRC.