KCB will pay a cash consideration for the BPR shares determined based on the net asset value of BPR at completion of the transaction.
The New Times understands that
The process is subject to approval by various regulatory bodies including Central Banks of the two countries, Capital Markets Authorities among others.
Prior to the new deal,
Toroitich said that when complete, the two banks will merge into one entity with BPR being included in KCB Rwanda's operations.
"The only thing left is approval by regulators and shareholders, KCB will then have a plan on how to take forth the merger," he said.
The new entity following the merger will be one of the largest players in the local market in terms of clients, assets and national footprint.
Odhiambo said that the merger will see the bank ranked 2nd largest bank in the country, increasing scale and improving operating leverage to deliver existing retail and wholesale offerings.
"This merger will see the bank ranked 2nd largest bank in the country, which will increase our scale and improve our operating leverage by enabling us to deliver existing retail and wholesale offerings to a wider base of customers in
While the timeline of the process is not clear, Toroitich said that the process is expected to be complete quickly.
Toroitich said that the development will not disrupt or affect any of the current ongoing business at the bank including issuance of loans and credit facilities.
"We are continuing everything we have been doing. This is a merger of growth not of cutting. The intention is to create a bigger business and our customers can look forward to being part of a regional bank," he said.
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