KCB Group Plc shareholders have approved the proposed acquisition of DRC-based lender Trust Merchant Bank SA (TMB), with the transaction expected to close before the end of the year, subject to regulatory approvals.
In August 2022, KCB Group Plc entered into a definitive agreement with shareholders of TMB to acquire the Bank.
Under the terms of the transaction, KCB will acquire 85 per cent of the shares in TMB while the existing shareholders will continue to hold the balance for a period of not less than 2 years, after which the Kenya Commercial bank will have the right to acquire their shares.
The acquisition is part of the lender’s ongoing strategy to expand its regional participation, accelerate growth and maintain sustainable long-term regional success.
“The shareholders’ nod is a major milestone for us to accelerate the acquisition process which will allow us to scale up our balance sheet, revenue streams and contribute positively to KCB’s growth and diversification objectives,” KCB Group Chairman Wambari Kairu.
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TMB, a public company limited by shares, is one of DRC’s largest banks, with USD1.5 billion in total assets, with 109 branches and numerous agency banking outlets spread across the East African nation.
“The approval of the transaction demonstrates the confidence our shareholders have in the financial and strategic benefits of the transaction and the value it provides our regional clients and communities,” Group CEO Paul Russo.
The acquisition is aligned with the Group’s strategic focus of scaling its regional presence Once completed, TMB will complement KCB Group’s footprint with an asset base of Sh1.5 trillion and is expected to strengthen the Group’s retail and corporate banking franchises.
SOURCE: The Kenya wall street
