DRC – KCB Group, the Kenyan financial services holding company, is set to acquire a majority stake in DRC-based TMB Bank, marking its entry into the country with a population of over 93 million people.
The transaction is expected to close by the end of the third quarter of 2022, subject to regulatory, shareholders, and other approvals.
KCB will acquire 85 per cent of the shares in TMB while the existing shareholders will continue to hold the balance for a period of not less than 2 years after which, KCB will acquire their shares.
The lender will pay cash consideration for the shares determined based on the net asset value of TMB at the completion of the proposed transaction and using a price to book multiple of 1.49.
Once completed, this acquisition will complement KCB Group’s regional footprint with an asset base of KSh1.5 trillion (US$12.60bn) and is expected to strengthen the Group’s Retail and Corporate banking franchises.
“This is part of our ongoing strategy to tap into opportunities for new growth while investing in and maximizing returns from the Group’s existing businesses,” said Andrew Wambari Kairu, KCB Group Chairman.
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