KCB Group has today announced that they will be cancelling the proposed acquisition of African Banking Corporation Tanzania Limited (“ABC Tanzania”), a commercial bank established and operating in Tanzania.
KCB had announced the proposed acquisition on 26 November 2020, informing shareholders that it had entered into a share purchase agreement with, among others, ABC Holdings Limited (“ABCH”) for the proposed acquisition of the Tanzanian Unit.
In the deal, KCB Group Plc would acquire a 62.06 per cent stake in Banque Populaire Du Rwanda (BPR) and a 100 per cent stake in African Banking Corporation Tanzania Limited (BancABC).
The lender, which already has a presence in the two markets, signed a share purchase agreement with Atlas Mara and gave itself a six-month timeline to complete the deal.
Completion of the transaction was subject to certain conditions that are customary for transactions of this nature including receipt of all regulatory approvals which have since been delayed by the regulatory authorities to which the bank has sought it wise to cancel the transaction.
As of the date hereof, certain regulatory approvals have not been received within the prescribed timeframe specified in the Agreement. As a result, without further agreement by the parties to extend the long-stop date, the Agreement has been terminated and, accordingly, the parties will not proceed to complete the Transaction as previously envisaged.- KCB Group Regulatory Notice.
KCB Group Plc Outlook
KCB Group has moved to assure shareholders that the Group will continue exploring and pursuing attractive regional expansion opportunities in order to enhance our regional participation, accelerate our growth and maintain sustainable long-term African success in line with our expansion and growth strategy.
KCB Group completed the purchase of the Rwandan bank in August, acquiring a 76 per cent stake in BPR from Atlas Mara (62 per cent) and private equity firm Arise (14 per cent). It plans to acquire the remaining 24 per cent stake owned by other minority investors.