Kenya Commercial Bank (KCB) Group has cancelled its plan to acquire a 100% stake in African Banking Corporation Tanzania Limited (BancABC) from London-listed Atlas Mara Limited, citing regulatory hurdles.
The lender signed a share purchase agreement with Atlas Mara last year, and gave itself a six-month timeline to complete the deal.
The transaction was to be settled in $8 million cash. However, the actual cash consideration payable by KCB would be determined based on the final book value of the bank once the transactions are complete.
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. 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.
The East African Quotes KCB’s Regulatory Notice to Shareholders
In August this year, KCB Group completed the purchase of a majority stake in Banque Populaire du Rwanda Plc(BPR), after acquiring shares previously owned by Arise B.V and Mauritius-based Atlas Mara Limited. The acqusition made the lender the majority shareholder.
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