KCB Group Set To Acquire 62.1% Of Banque De Populaire du Rwanda

By Soko Directory Team / Published November 30, 2020 | 8:58 am



Investment young adults

KCB Group disclosed that it had entered into an agreement with Atlas Mara Limited (ATMA) to acquire a 62.1 percent stake in Banque De Populaire du Rwanda (BPR) in Rwanda and a 100.0% stake in African Banking Corporation Ltd Tanzania (ABC Tanzania).

Equity Group had previously entered into a binding agreement in April 2019 with Atlas Mara on the acquisition of banking assets in four countries (Rwanda, Tanzania, Zambia, and Mozambique).

Equity was also to get 62.0 percent of the share capital of Banque Populaire du Rwanda (BPR); 100.0 percent of the share capital of Africa Banking Corporation Zambia (ABCZam) Ltd; 100.0 percent of the share capital of Africa Banking Corporation Tanzania (ABCTz); and, 100.0% of the share capital of Africa Banking Corporation Mozambique Ltd (ABCMoz).

The transaction was to be funded by a share swap whereby Atlas Mara would be allotted Kshs 252.5 mn shares of Equity Group, equivalent to a 6.7 percent stake valued at about 8.9 billion shillings using the closing price of 35.1 billion shillings on 26th June 2020 and effectively valuing Equity Group at 132.3 billion shillings.

However, as highlighted in our Cytonn Weekly #26/2020, in June 2020, the two parties mutually agreed to call off the acquisition plans as the Group was working to enhance their strategy following the COVID-19 pandemic which involved conserving cash and having liquidity.

In the 62.1% BPR acquisition, KCB will pay a cash consideration based on the net asset value of the BPR at the completion of the transaction using a price to book multiple of 1.1x.

Key to note, according to the latest BPR financials, the bank had a book value of Rwf 46.6 bn (Kshs 5.2 bn), and thus at the trading multiple of 1.1x, we estimate KCB will have to part with 5.7 billion shillings.

The Group also separately intends to make an offer to acquire the remaining shares from the respective shareholders.

The proposed acquisition is subject to approval from the shareholders, the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission, and the Capital Markets Authority.

KCB has also agreed to purchase a 96.6 percent stake of ABC Tanzania held by ABC Holdings Limited (ABCH), the wholly-owned subsidiary of Atlas Mara.

Additionally, KCB separately intends to make an offer to acquire the remaining shares of 3.4 percent from the Tanzania Development Finance Company Limited. Subject to the approval of the shareholders and the regulatory authorities in Kenya and Tanzania, the current price to book multiple for the acquisition stands at 0.4x.





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author






Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (104)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (237)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (186)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950