Bank of Africa Kenya (BOA) has acquired a majority stake in the BMCE Bank of Morocco.
The Moroccan subsidiary has a 72.7 per cent shareholding in the BOA Group.
BMCE Bank which previously held 65.02 percent shareholding until FY 2013 increased its stake in the BOA Group network of 18 countries in FY 2014.
The shareholding structure also include Private African Investors with ownership worth16.09 percent, FMO 5.02 per cent, PROPARCO 3.84 per cent and BIO which owns 2.35 percent
“The larger shareholding by BMCE Bank means that we are now part of a strong strategic partner and we can better focus on our main goal which is to finance the African economy; that includes retail customers, companies of all sizes, private projects, and also public projects” said Bank of Africa Kenya Managing Director Ronald Marambii.
The association with BMCE Bank has over 2.2 million customers, a branch network of 1,200 in Africa and close to 2.3 million bank accounts gave the Group confidence that it shall continue to remain a significant and sustainable Trans African Group.
BOA Kenya is one of the largest subsidiaries within the BOA group in terms of total assets (FY 2014) and is strategically placed as an anchor subsidiary for the Eastern Africa region. Other large subsidiaries within the group network include Madagascar, Benin, Burkina Faso, Cote D’Ivoire, and Mali.
BOA Kenya has grown its total capital base from Sh 7.2billion to Sh10.1billion as at 30 September 2015, with a share capital of Sh 4.5 billion over the last three years.
“This new corporate identity will be supported by an aggressive visibility and brand awareness campaign as we work towards growing our position in the Kenyan market”, he said Marambii.
Meanwhile the lender has also announced the acquisition of a new building on Waiyaki Way along Karuna Close in Westlands to house its Headquarters, with the acquisition estimated to be worth Sh1.4 billion.
The HQ will house the Bank’s administrative offices, a Business Center and an Elite retail branch.
The acquisition is fully funded by BOA and is aimed at consolidating its operations as it focuses on its five strategic pillars which are; boosting involvement in financing the economy, increasing risk control, better control of financial and operational expenses, pursuit of targeted external growth and development of synergies with BMCE bank to further exploit the many possibilities offered by the majority shareholder. (Reporting By Steve Umidha)
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