Emerging business details indicate that KCB Group PLC has acquire a 85% stake in DRCsTrust Merchant Bank (TMB) according to a joint communique issued on Tuesday.
According to the statement, KCB Group PLC has signed a definitive agreement with the shareholders of TMB with the aim of acquiring a majority stake in the bank based in the Democratic Republic of Congo.
The transaction is expected to close by the end of the third quarter of 2022 (September), subject to shareholder, regulatory and other approvals.
“This transaction will see KCB acquire 85% of the shares of TMB while the former shareholders will keep the rest of the shares for at least 2 years, after which KCB will acquire the remaining 15%, KCB will pay in cash for the shares on the basis of the net asset value of TMB on the date of conclusion of the contemplated transaction, using a multiplier of 1.49.“
Andrew Wambari Kairo, President of KCB Group said, “This is part of our ongoing strategy to exploit new growth opportunities by investing in and maximizing returns from the Group’s existing businesses. This gives us ample scope to accelerate our growth ambitions to deliver value for our shareholders, support the drive for broader financial inclusion, and for social and economic transformation in Africa, and beyond. . We are delighted to be able to play a catalytic role in the economic development of the DRC and East Africa.”
For Robert Levy, Chairman of the Board of Directors of TMB, they are proud to bring their “in-depth” knowledge of the DRC as well as their experience to the service of KCB Group PLC.
“We are excited about the opportunities KCB offers in this transaction, and are proud to bring our in-depth knowledge of Congo and our experience to the KCB Group. We believe that with our knowledge of the local market, backed by the size and expertise of the KCB Group, we should be able to increase our market share and shareholder returns, pool our synergies to to exploit business opportunities. “, he said.