KCB Group has completed the acquisition of Democratic Republic of Congo (DRC) lender Trust Merchant Bank SA (TMB) in a deal estimated to cost more than Sh15 billion.
The tier-one lender yesterday said it had received all regulatory and corporate approvals to seal the acquisition.
“KCB is hereby pleased to announce to its shareholders and the investing public that the parties to the transaction have received all applicable regulatory and corporate approvals and each of the conditions precedent to completion of the transaction have, in accordance with the contractual terms, been satisfied or waived. Accordingly, the transaction was completed on December 14, 2022,” said KCB.
The conclusion of the deal comes three months after the bank’s shareholders in September gave the nod for the acquisition of the DRC-based lender.
KCB in August acquired an 85 percent stake in TMB, becoming the second Kenyan lender to enter the populous market.
The acquisition at a value of Sh1.49 per share gives the lender an option to acquire the remaining stake in the future.
KCB’s entry into the DRC is set to heat competition for customers in the fast-growing populous country.
TMB is a public company limited by shares and has a strong offering in retail, corporate, and small and medium enterprises.
It is one of DRC’s largest banks with $1.5 billion (Sh184.5 billion) in total assets. It has a strong offering in retail, SME, corporate, and digital banking channels and over 110 branches and numerous agency banking outlets spread across DRC.
The deal now means KCB has a presence in eight countries including Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, and DRC. It also runs a representative office in Ethiopia.
“The acquisition gives us a strong headroom to accelerate our growth ambitions to deliver better value for our shareholders and drive for deeper financial inclusion. It provides us with an opportunity to bank on the immense trade opportunities that comes with the admission of DRC into the East African Community (EAC),” KCB said earlier.
KCB posted a 21.4 percent growth in net profit in the nine months to September after earning Sh30.6 billion net profit up from Sh25.2 billion last year.
The performance saw the lender approve an interim dividend of Sh1 per share amounting to Sh3.2 billion for its shareholders.
This is as its balance sheet grew by 13.7 percent, with its total assets reaching Sh1.28 trillion.
