BK Group Sells BK General Insurance Stake for RWF31.7B, Integrates BK Techouse
BK Group Plc has completed the sale of its entire stake in BK General Insurance Ltd (BKGI) to the Rwanda Social Security Board (RSSB) for RWF31.7 billion.
The Group has also integrated BK Techouse Ltd (BKTH) into Bank of Kigali Plc, transferring its assets, technology platforms and relevant contracts to the bank.
The transactions form part of BK Group’s consolidation around commercial banking through Bank of Kigali and investment banking through BK Capital Ltd.
The sale involved BK Group’s entire holding of 3 million issued and fully paid ordinary shares in BKGI.
The RWF31.7 billion consideration represents RWF10,567 per share, compared with the initial price of RWF1,000. BK Group said the pricing was based on an independent valuation.
The transaction transfers BK Group’s full interest in the insurance business to RSSB.
Following the integration, BK Techouse has ceased operating as a separate subsidiary.
Its technology functions will continue under Bank of Kigali’s Digital division, with no disruption to customer services.
The transaction proceeds enabled BKTH to settle all its liabilities. Any surplus will be transferred to BK Group upon closure of the company.
BK Group said the integration will have no effect on its consolidated net asset value.
The Group’s consolidation strategy centres on two operating businesses: commercial banking through Bank of Kigali and investment banking through BK Capital.
BK Group said the businesses will focus on product diversification, market expansion, cross-collaboration synergies and strengthening its capital markets offering.
BK Group said both transactions met the required regulatory requirements, with non-objections received from the National Bank of Rwanda.
The Group notified the Rwanda Stock Exchange, Nairobi Securities Exchange, Capital Market Authority of Rwanda and Capital Markets Authority of Kenya in line with its continuing obligations and applicable listing rules.
