BK Group Plc has completed the sale of its entire shareholding in BK General Insurance Ltd to the Rwanda Social Security Board (RSSB) for Rwf31.7 billion. The group announced the completion of the transaction on Monday, August 31, in a notice to the Rwanda Stock Exchange, Nairobi Securities Exchange and the capital markets regulators in Rwanda and Kenya. ALSO READ: Should insurance firms merge to address market inefficiencies? BK Group said the Rwf31.7 billion consideration represents the value of its entire shareholding in BK General Insurance. The transaction involved three million issued and fully paid ordinary shares, translating to a price of Rwf10,567 per share, compared with the initial price of Rwf1,000 per share. The group said the sale price was based on an independent valuation. According to the Group, the transaction is part of its consolidation strategy, under which it is focusing on two core operating businesses - commercial banking through Bank of Kigali Plc and investment banking through BK Capital Ltd. The group said the strategy places emphasis on product diversification, market expansion, cross-collaboration synergies and a strengthened capital markets offering. Alongside the insurance sale, BK Group has completed the integration of BK Techouse Ltd (BKTH) into Bank of Kigali. ALSO READ: BK TecHouse technology to increase farmer funding through de-risking agriculture Under the integration, BK Techouse's assets, technology platforms and relevant contracts have been transferred to Bank of Kigali. BK Techouse has consequently ceased to operate as a separate subsidiary of BK Group, while technology functions previously performed by the company will continue under Bank of Kigali's Digital division. BK Group said there has been no disruption to customer services following the integration. According to BK, proceeds from the BK Techouse transaction enabled the company to settle all its liabilities. Any surplus will be transferred to BK Group when the company is closed. The integration will have no effect on BK Group's consolidated net asset value, according to the notice.
