KCB Group Plc has completed the acquisition of Trust Merchant Bank SA (TMB) after receiving all the regulatory approvals in Kenya, DRC and Common Market for Eastern and Southern Africa’s (Comesa’s) Competition Commission.
The Group now owns 85% stake in the Democratic Republic of Congo (DRC) based lender.
The Group CEO Paul Russo said the transaction will positively contribute towards the banks’ increased scale of operations by establishing its presence in new markets and providing income diversification from a geographical perspective.
The Nairobi-securities exchange listed bank, which already has operations in Rwanda, Burundi, Tanzania, Uganda, and South Sudan— has the right to buy out the remaining shareholders in the 109-branch DRC lender in two years.
However, the lender has not disclosed the actual value of the deal but previously said the purchase will be priced at 1.49 times the book value or net assets of the DRC lender, working out to nearly KES 20 billion.
KCB Group will operate TMB with its current brand and will enhance the current business operating model with the capabilities KCB has built over time in systems and processes. This will build on the strengths of TMB and enable TMB to deliver significant incremental value by being part of KCB.
“We see significant business opportunities from this acquisition arising from delivering innovative financial services to customers, growing linkages between customers in our region and realizing operational efficiencies which will deliver tangible value to key stakeholders,” Mr Paul Russo.
Currently, the KCB has $1.7 billion (KES 208.8 billion) in total assets, with a strong offering in retail, SME, corporate and digital banking.
Read also; KCB Group to Acquire DRC Lender Trust Merchant Bank.
