KCB Group CEO Joshua Oigara (right) Chairman Andrew Kairu (centre) and Group CFO Lawrence Kimathi during the release of the full-year result/ Courtesy. 

NAIROBI, Kenya Nov 2- KCB Group Plc has pulled out of the bid to acquire African Banking Corporation Tanzania Limited (BancABC), a commercial bank domiciled in Tanzania.

This follows failure to receive certain regulatory approvals within the prescribed timeframe specified in the Agreement.

On November 26, 2020, KCB announced that it would acquire 62.06 percent stake in Banque Populaire Du Rwanda (BPR) and 100 percent stake in African Banking Corporation Tanzania Limited (BancABC).

The lender signed a share purchase agreement with Atlas Mara and gave itself a six-month timeline to complete the deal. The transaction would be settled in cash with $32 million being incurred on BPR and $8 million on BancABC as part of its expansion strategy in the EA market. 

“The completion of the transaction was subject to certain conditions that are customary for transactions of this nature including receipt of all regulatory approvals. 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 CEO Joshua Oigara said. 

The transaction was envisioned to bolster the Group’s regional play and market share in Tanzania as part of the wider strategy to grow the contribution of its international businesses to the Group’s profitability.

“Despite the above, 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,” Oigara said.