9th December, 2013
Fina Bank will change its identity to Guaranty Trust Bank Kenya after a Nigerian bank was given approval to buy a 70 per cent stake in the regional lender.
Central Bank of Kenya said it has offered a nod to the deal, setting the stage for a board shake-up at Fina Bank to reflect the new ownership structure.
“The approval for acquisition takes effect as from November 8, 2013. The resulting institution shall be called Guaranty Trust Bank Kenya Limited,” said Prof Njuguna Ndung’u, the Central Bank of Kenya (CBK) governor.
The Nigerian bank will acquire the majority stake in Fina Bank, set up in 1991, through a share purchase from current shareholders and direct investment in a deal valued at $100 million (Sh8.6 billion).
GTBank is eyeing expansion opportunities in East Africa after building out operations in West Africa to tap into the region’s fast growing economies and infrastructure deals, especially oil and gas financing.
Fina Bank’s assets stood at Sh19.3 billion in September and its profit grew 66.6 per cent to Sh255 million in the first nine months of the year. It has branches across Kenya, Uganda and Rwanda.
The bank has been looking for between Sh2.6 billion and Sh3.49 billion as additional capital to fund its growth plans.
Guaranty Trust Bank had $10.76 billion (Sh930 billion) in net assets last December or two-fifths of the Kenyan industry’s combined balance sheet of Sh2.33 trillion at the end of last year.