KCB Group Plc (NSE:KCB) has ended its acquisition bid for 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 had announced that it had entered into a share purchase agreement with, among others, ABC Holdings Limited for the proposed acquisition of BanABC.
“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” said KCB Group CEO and MD Joshua Oigara.
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 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,” said Mr. Oigara.
