KCB Bank Rwanda Kigali –KCB Group Plc (“KCB”) hereby provides an update on the strategic transaction for the acquisition of a majority stake in Banque Populaire Du Rwanda Plc (“BPR”).
As previously announced in November 2020, Atlas Mara and KCB signed a definitive agreement regarding the acquisition of 62.06% of the issued share capital of BPR by KCB (the “Transaction”) which will be followed by a subsequent merger with KCB’s wholly owned subsidiary operating in Rwanda, KCB Bank Rwanda Plc. KCB also on February 26, 2021, acquired 14.61% of the issued share capital of BPR held by Arise B.V.
We are pleased to announce that having successfully secured the necessary regulatory approvals and consents, and fulfilled all other agreed closing conditions, both transactions were completed, with KCB having assumed majority ownership and control for the operations of BPR effective on August 25, 2021.
Commenting on the transactions, KCB Group CEO and MD Joshua Oigara said: “We are delighted to complete this acquisition of BPR, a strong retail and SME bank with the largest branch network in the sector and a long history spanning over 45 years in the country. This transaction will see the combined bank becoming the 2nd largest bank in the industry.”
The plan, said Mr Oigara, is to eventually create one banking entity in Rwanda to be named BPR Bank by merging KCB Bank Rwanda and BPR.
The merger will provide current KCB Rwanda customers with access to a larger network of branches and agents across the country, while BPR customers will benefit from best-in-class digital capability, transactional banking solutions, trade finance expertise and international banking offering from KCB.
“This will increase our scale and improve our operating leverage by enabling us to deliver our existing retail and wholesale offerings to a wider base of customers in Rwanda while positioning the bank for sustainable growth in the long-term,” said Mr Oigara.
BPR Managing Director Maurice Toroitich said: “We are delighted to have KCB as a shareholder and partner as we continue to execute our growth strategy and very delighted to have been part of this milestone transaction in the Rwanda banking sector. Through this transaction, our customers will benefit from being part of a large banking group in East Africa and will benefit from KCB’s digital banking capabilities, complementary branch and agent network, innovative product offering across retail, SME and corporate as well as leveraging the broader KCB regional footprint.”
The combined entity is […]
