KCB Group PLC has completed the acquisition of Banque Populaire du Rwanda Plc (BPR) from Atlas Mara Mauritius Limited and Arise B.V.
This makes the lender a majority shareholder with a 76.67 percent stake in the Banque Populaire du Rwanda Plc totalling Ksh.4.6 billion
This follows the securing the requisite shareholder and regulatory approval earlier in the year from both Kenya and Rwanda.
Completion of the transaction in Rwanda gives KCB a stronger edge in deepening the ongoing lender’s strategy to scale regional presence.
“The combined history of BPR and KCB will take the Group to greater heights, giving us a stronger edge to play a bigger role in driving the financial inclusion and economic empowerment agenda in the East African region,” said KCB Group CEO and MD Joshua Oigara.
“This will increase our scale and improve our operating leverage by enabling us to deliver our existing retail and wholesale offerings to a wider base of customers in Rwanda while positioning the bank for sustainable growth in the long-term,” he added.
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BPR is a strong retail and SME Bank with the largest branch network in the sector and a long history spanning over 45 years in Rwanda.
In the short run, KCB is expected to make a joint entity as a banking entity in Rwanda to be named BPR Bank by merging KCB Bank Rwanda and BPR. The combined bank will become the second largest bank in the industry.
KCB Group has appointed an integration committee made up of senior executives to spearhead the attainment of the single entity in Rwanda in the coming months.
Nonetheless, KCB Group intends to acquire 100 percent shareholding of African Banking Corporation Tanzania Limited (BancABC) from ABC Holdings Limited (96.6%) and Tanzania Development Finance Company Limited (3.4%) but the proposed acquisition is, however, pending some approvals.
“The acquisition of BPR and BancABC provides KCB with the opportunity to rapidly scale up its balance sheet and revenue streams while leveraging on cost synergies, effectively putting it and all its stakeholders on a path to greater prosperity,” said Oigara.
