The Kenya Commercial Bank (KCB) Group has terminated a deal to acquire Tanzanian lender, African Banking Corporation Tanzania Limited (ABC Tanzania).
In a public announcement issued by Group Company Secretary Ms Bonnie Okumu, KCB lamented that it had not received regulatory approvals on time, the reason the deal was terminated.
KCB had entered into a purchase agreement with ABC Holdings Limited and ATMA for the purchase of 96.6 percent of the issued share capital of ABC Tanzania on November 25, 2020. The Kenyan lender also intended to make an offer to Tanzania Development Finance Company Limited for the purchase of the remaining 3.4 percent of the issued share capital of ABC Tanzania.
“Completion of the Transaction was subject to certain conditions that are customary for transactions of this nature including receipt of all regulatory approvals. 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,” said Ms Okumu.
“Despite the above, KCB 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.”
In August, KCB completed the acquisition of Banque Populaire du Rwanda Plc (BPR) from Atlas Mara Mauritius Limited and Arise B.V.
KCB Group CEO and MD Joshua Oigara said that the completion of the transaction in Rwanda would give the Group a stronger edge in deepening the ongoing Group 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 Mr Oigara in August.
“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.”
Read: NBK De-Lists From Stock Market After KCB Takeover
>>> KCB Acquires Rwanda’s 2nd Largest Bank, Eyes More in Tanzania
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