KCB Group shareholders have approved the proposed majority stake acquisition in Trust Merchant Bank SA (TMB) based in the Democratic Republic of Congo.
Shareholders reached an agreement for the lender to go ahead with the transaction to acquire 85pc of the shares in TMB during the Extra Ordinary General Meeting held Wednesday in Nairobi.
If approved by the Kenyan and DRC regulators, existing shareholders in TMB will continue to hold the remaining 15pc share balance for a period of not less than 2 years after which KCB will have the right to acquire their shares.
The giant lender says the transaction which commenced last month after entering a definitive agreement with shareholders of TMB to acquire the bank is part of its ongoing regional expansion strategy to accelerate growth and maintain sustainable long-term regional success while investing in and maximizing the returns from its existing businesses.
“The shareholders’ nod is a major milestone for us to accelerate the acquisition process which will allow us to scale up our balance sheet, revenue streams and contribute positively to KCB’s growth and diversification objectives. In turn, KCB will be able to rapidly establish its presence within DRC by leveraging on TMB’s 18-year operational history and vast branch network,” said Wambari Kairu KCB Group Chairman.
TMB, a public company limited by shares, is one of DRC’s largest banks, with Ksh 180 billion ($1.5 billion) in total assets with strong offering in retail, SME, corporate and digital banking channels.
“The approval of the transaction demonstrates the confidence our shareholders have in the financial and strategic benefits of the transaction and the value it provides our regional clients and communities,” said Paul Russo, KCB Group CEO.
TMB acquisition will see KCB Group total asset base rise to Ksh 1.5 trillion from Ksh 1.2 trillion reported during the half year of 2022, cementing its place as Kenya’s largest bank.
TMB has 109 branches and numerous agency banking outlets spread across DRC including its insurance subsidiary, Affrissur SA.