KCB Group PLC (NASE:KCB) entered into a definitive agreement to acquire 85% stake in Trust Merchant Bank S.A. on August 2, 2022. Under the terms of the transaction, KCB Group will pay a cash consideration for the shares determined based on the net asset value of Trust Merchant Bank at completion of the proposed transaction, and using a price to book multiple of 1.49. Upon completion, Trust Merchant Bank will become a subsidiary of KCB Group. Existing shareholders of Trust Merchant Bank will continue to hold the balance for a period of not less than 2 years after which, KCB Group will acquire their shares. The transaction is subject to satisfaction of conditions that are customary for transactions of this nature, including receipt of shareholder's approval and all regulatory approvals from, amongst others, the Central Bank of Kenya, the Banque Centrale du Congo, the COMESA Competition Commission and the Capital Markets Authority. The transaction is expected to close by the end of the third quarter of 2022. Deloitte Consulting Limited & Ernst & Young Kenya acted as accountants while Coulson Harney LLP acted as legal advisor to KCB Group PLC.

KCB Group PLC (NASE:KCB) completed the acquisition of 85% stake in Trust Merchant Bank S.A. for KES 2.5 billion on December 1, 2022. KCB will retain the brand Trust Merchant Bank. All the regulatory approvals have received including antitrust approval. Stein Scop Attorneys Inc. acted as legal advisor to KCB Group PLC.