Kenya’s KCB Group has announced its plans to acquire 85% of Trust Merchant Bank (TMB), a DRC-based lender. Should the deal complete, the remaining shareholders will continue to hold the balance for not less than two years after which KCB will acquire the remaining 15%.
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. It gives us strong headroom to accelerate our growth ambitions to deliver better value for our shareholders and to bolster the push for deeper financial inclusion and social and economic transformation in Africa and beyond. We are excited that we can now play a role in catalyzing DRC’s and indeed East Africa’s economic expansion agenda.
Andrew Wambari Kairu, KCB Group Chairman
Deal rationale & details
The deal aligns with KCB’s strategic focus, which is to grow its regional presence, and once completed will complement the group’s regional footprint with an asset base of USD 12.6bn (KES 1.5tn) and further strengthen its retail and corporate banking franchises.
The Kenyan bank will pay a cash consideration for the shares, based on the net asset value of TMB at completion of the proposed transaction and using a price to book multiple of 1.49. Furthermore, this acquisition gives KCB access to Africa’s second-largest country, which has a population of over 93mn people.
The deal is expected to complete by the end of Q3 2022 and is subject to regulatory and shareholder approvals.
About TMB
The DRC-based bank is one of the country’s largest banks with USD 1.5bn in total assets. It has a strong offering in retail, SME, corporate and digital banking. It has over 110 branches and numerous agency banking outlets spread across DRC.