The Kenya Commercial Bank (KCB) Group has terminated its plan to acquire a 100% stake in African Banking Corporation Tanzania (BancABC) from London-listed Atlas Mara, citing regulatory challenges.
Last year, KCB signed a share purchase agreement with Atlas Mara, and gave a six month timeline to complete the deal.
According to the purchase agreement, the transaction was to be settled in Ksh. 900.8 million (USD 8 million) in cash. However, the actual cash consideration payable by KCB would be determined based on the final book value of the bank once the transactions were complete.
In August this year, KCB Group completed the purchase of a majority stake in Banque Populaire du Rwanda (BPR).This is after acquiring shares previously owned by Arise B.V and Mauritius-based Atlas Mara. The acquisition made the lender the majority shareholder.
“As announced, completion of the transaction was subject to certain conditions, including receipt of all regulatory approvals. As of the date hereof, certain regulatory approvals have not been received within the prescribed timeframe specified in the Agreement,” stated KCB in a regulatory notice to shareholders.
KCB Group Plc is East Africa’s largest commercial Bank that was established in 1896 in Kenya. Over the years, the Bank has grown and has set up in Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (Rep). KCB Group also owns National Bank of Kenya (NBK). Today KCB has the largest branch network in the region with 354 branches, 1,103 ATMs and over 26,394 merchants and agents offering banking services on a 24/7 basis in East Africa. Additionally, KCB Group owns KCB Insurance Agency, KCB Capital Limited, KCB Foundation and Kencom House Limited as non-banking businesses.