KCB opts out of agreement to buy Tanzanian bank
KCB Group has seen its quest to acquire the African Banking Corporation Tanzania Limited (BancABC) fall through after the delay of necessary regulatory approvals.
Subsequently, the bank has indicated it has terminated its agreement to buy the bank as the wait for a green light by regulators exceeds its planned timelines for the transaction.
“As of the date hereof, certain regulatory approvals have not been received within the prescribed timeframe specified in the agreement. As a result, without further agreement by the parties to extend the long stop date, the agreement has been terminated and accordingly, the parties will not proceed to complete the transaction as previously envisaged,” KCB Group said in a public notice on Thursday.
KCB had in November last year entered a share purchase agreement to acquire the bank as part of a twin transaction that has seen it acquire a 77 per cent stake in Banque Populaire du Rwanda-The Popular Bank of Rwanda-(BPR).
KCB had been hoping to seal the acquisition of a 100 per cent stake in BancABC by October after completing the purchase of a majority stake in BPR in August.
Both banks were part of lending assets belonging to the London Securities Exchange (LSE) listed Atlas Mara.
Despite the setback, KCB has indicated it remains active in the search for new expansion opportunities to expand its regional reach.
“KCB will continue exploring and pursuing attractive regional expansion opportunities in order to enhance our regional participation, accelerate our growth and maintain sustainable long-term African success in line with our expansion and growth strategy,” the bank added.