Atlas Mara sells Rwandan and Tanzanian assets in cash deal

Image Credit: BancABC

Atlas Mara, the pan-African banking investment platform, has come to an agreement to dispose of its stakes in banking assets in Rwanda and Tanzania to KCB Group, Kenya’s largest lender by assets. The move reflects Atlas Mara’s shift in strategy following a review announced last year aimed at shoring up the group’s position and disposing of any assets which lack a clear, near-term path to acceptable profitability. Earlier this year, a proposed deal to merge the assets with Kenya’s Equity Bank foundered due to uncertainty caused by the onset of the COVID-19 pandemic.

KCB is paying cash for the two assets – Banque Populaire du Rwanda (or BPR) and African Banking Corporation Tanzania (or BancABC Tanzania) –  acquiring Atlas Mara’s 62.06% shareholding in BPR at an approximate 1.09 times book value and all of Atlas Mara’s indirect interests in BancABC Tanzania at an approximate 0.42 times book value. The final amount paid will be based on the final book value of the assets on completion of the transactions which are expected to take place in the first half of 2021. Both transactions are subject to the receipt of regulatory and other standard approvals.

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