BK Group said the transaction covers its entire shareholding in the insurance company and values each of the 3 million ordinary shares at Rwf 10,567, based on an independent valuation. The initial price was Rwf 1,000 per share.
The completion of the transaction is part of BK Group's consolidation strategy, under which the Group is focusing on two core businesses: commercial banking through Bank of Kigali Plc and investment banking through BK Capital Ltd.
According to the notice, the strategy places emphasis on 'product diversification, market expansion, cross-collaboration synergies and a strengthened capital markets offering.'
BK Group said the sale of BKGI reflects this shift as it concentrates its operations on banking and investment banking.
The Group has also completed the integration of BK Techouse Ltd (BKTH) into Bank of Kigali Plc.
Under the integration, BKTH's assets, technology platforms and relevant contracts have been transferred to Bank of Kigali, while the technology functions previously performed by the company will continue under the bank's Digital division.
BK Group said the change will not disrupt customer services and that BKTH has ceased to operate as a separate subsidiary.
Proceeds from the transaction enabled BKTH to settle all its liabilities, with any surplus remaining at the closure of the company to be transferred to BK Group.
The integration will have no effect on BK Group's consolidated net asset value, according to the notice.
Both transactions received the required regulatory clearances, including non-objections from the National Bank of Rwanda.
BK Group said the two developments are aligned with its efforts to streamline the Group and strengthen its focus on its core banking and investment banking businesses.
The move follows RSSB's acquisition last month of all the remaining shares in Inyange Industries and Ruliba Clays, two companies that were subsidiaries of Crystal Ventures Ltd (CVL).
Source : https://new.igihe.com/english/rssb-completes-acquisition-of-bk-general-insurance/
