{"id":42298,"date":"2020-11-26T10:42:07","date_gmt":"2020-11-26T10:42:07","guid":{"rendered":"https:\/\/new.igihe.com\/kcb-group-to-acquire-bpr-plc\/"},"modified":"2020-11-27T20:34:46","modified_gmt":"2020-11-27T20:34:46","slug":"kcb-group-to-acquire-bpr-plc","status":"publish","type":"post","link":"https:\/\/new.igihe.com\/english\/kcb-group-to-acquire-bpr-plc\/","title":{"rendered":"KCB Group to acquire BPR Plc"},"content":{"rendered":"

According to a statement from KCB Group, the proposed transaction will see KCB acquiring BPR Plc and African Banking Corporation Tanzania (BancABC).<\/p>\n

\u201cKCB Group Plc (KCB) and Atlas Mara (ATMA) have signed a definitive agreement which will see East Africa\u2019s biggest Bank by assets increase its footprint within the region,\u201d reads part of the statement. <\/p>\n

This is through the acquisition of a 62.06% stake in BPR Plc and a 100% stake in African Banking Corporation Tanzania Limited (BancABC) from ATMA in Rwanda and Tanzania, respectively.<\/p>\n

The successful completion of the transaction is subject to obtaining shareholder approval and to obtaining regulatory approvals in the respective countries.<\/p>\n

KCB Group CEO and MD Joshua Oigara said the transaction was part of KCB\u2019s ongoing strategy to explore opportunities for new growth while investing in and maximizing returns from the Group\u2019s existing businesses. The acquisition, he added, will buttress the Group\u2019s 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. <\/p>\n

\u201cThe transaction fits within the Group\u2019s 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, \u201d said Mr. Oigara. <\/p>\n

\u201cOnce the transaction is completed, the Group\u2019s Rwanda and Tanzania businesses are expected to have stronger financial credentials to support business growth in the post covid-19 macroeconomic recovery\u201d he added.<\/p>\n

In Rwanda, upon completion of the acquisition, the resultant KCB Group business is expected to see KCB double its market share to become the second largest bank in the country and solidify KCB Group\u2019s leadership position.<\/p>\n

In what reaffirms the Bank\u2019s strong credentials, KCB Group Plc was ranked at position 667 globally in The Banker\u2019s Top 1000 World Banks ranking for 2020, climbing 40 places in a survey that shows a stabilization in the finances of the majority of African major lenders. The performance is an improvement from position 717 last year in the ranking which tracks the health and wealth of the global banking sector. In 2018, KCB was ranked 809. <\/p>\n

KCB Group has been running operations in Rwanda for 12 years since 2008. <\/p>\n

The transactions come after Equity Group from Kenya (which also has a subsidiary in Rwanda) called of the plan of acquiring stakes in BPR Plc due to COVID-19 related effects. Talks for the canceled acquisition had started in April 2019 with the objective of reaching mutually acceptable terms for a strategic transaction. <\/p>\n

After careful consideration, Atlas Mara (which owns 62 per cent share in BPR) and EGH mutually agreed to discontinue discussions.<\/p>\n

In April 2015 Atlas Mara Limited (“Atlas Mara” or “the Company”) ( LSE : ATMA ), a financial services holding company with subsidiaries and investments in Botswana, Germany, Mozambique, Nigeria, Rwanda, South Africa, South Sudan, Tanzania, Zambia and Zimbabwe, acquired minority shares in BPR and later in 2016 it merged BPR with the commercial banking wing of the Development Bank of Rwanda (BRD) that it had acquired in 2014 giving Atlas Mara the controlling stake in BPR with 62.1% of shares, strategic partner Arise remaining with 14.6% and 23.3% retained by Local Shareholders. <\/p>\n

\"KCB<\/figure>\n","protected":false},"excerpt":{"rendered":"

{KCB Group PLC , one of Kenya\u2019s top banks with a subsidiary in Rwanda has announced plan to acquire 62.06% stake in Banque Populaire du Rwanda Plc (BPR Plc), part of Atlas Mara. } <\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[75],"byline":[170],"hashtag":[],"class_list":["post-42298","post","type-post","status-publish","format-standard","hentry","category-news","tag-homenews","byline-igihe"],"bylines":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"contributors":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"featured_image":null,"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/42298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=42298"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/42298\/revisions"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=42298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=42298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=42298"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=42298"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=42298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}