Banque Populaire du Rwanda PLC. has finally found a suitor after Equity Bank aborted plans to acquire majority stake earlier this year.
Kenya Commercial Bank (KCB) has announced interest to acquire 62.06% stake in BPR from current manor shareholder, Atlas Mara Ltd.
The take over will have to be subjected approvals from the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission and the Capital Markets Authority, KCB Group said in a statement.
Once approved, KCB plans to make an offer to Arise BV (Norfund, Rabobank, and FMO) who holds 14.6% stake and minority shareholders with 23.3%.
BPR CEO, Maurice Toroitich told Taarifa on Thursday morning that this is a culmination of Atlas Mara’s strategy as previously announced.
“They (KCB) will buy BPR at 1.09 of net book value,” he said. He also confirmed BPR’s current total net book value as Rwf46 billion as of June 30, 2020.
Therefore 62% = Frw 28.52 billion = 1.09×28.52 = Approx. Frw 31 billion.
Toroitich noted that, this is always subject to adjustments agreed between shareholders. “So it’s not as straight forward as that.”
Meanwhile, this time around, BPR is expecting a cash offer as opposed to Equity Bank that had only offered a share swap deal, which was declined by the regulator.
If this deal goes through, BPR will become a subsidiary of KCB, and will be integrated with KCB’s existing subsidiary in Rwanda.