Three foreign banks compete for shares

Finally the Privatisation Secretariat has zeroed in on three international banks to bid for the government shares in Banque de Kigali.

Finally the Privatisation Secretariat has zeroed in on three international banks to bid for the government shares in Banque de Kigali.

Though the Secretariat refused to name the banks saying it was still premature, financial experts describe the bidders as credible and are in banking business.

These banks come in at a backdrop the bank failed to attract core investors.

Government floated its majority stake in Banque de Kigali after buying 50 per cent more shares in the bank adding to its 36.5 per cent original stake.

This was after Belgolaise, a Belgian based bank with a majority stake pulled out banking business in Rwanda.

But with the expertise of KPMG, a Kenya based firm, government has identified three international potential buyers.

“We will be grateful if one of these banks buys government shares. These are international reputed banks with a large network across the world,” the Executive Secretary of Privatisation Secretariat Manasseh Twahirwa said.

Caise Sociale, government owned National Social Security Fund also is another stakeholder in Banque de Kigali, with 13.5 percent shares.
Twahirwa said BK is a healthy and competitive bank.

Thus needs a competitive investor to run it and give it its value.

The pre-selected bidders will next Monday be in the country to study the market, financial sector and banking sector.
The banks are expected to submit their technical and financial offers.
Twahirwa suspects the process would be completed by the end of October this year.

Belgolaise the majority share holders in BK for 40 years, decided to sell off its shares after it parent company Fortis, another Belgian institution pulled out of banking business in Africa.

Government selected a team of technicians composed of members from Presidents’ Office, Prime Ministers’ Office, Ministry of Finance, Privatisation Secretariat and Central Bank to work closely with the financial advisor (KPMG) to re brand and come up with the real value of the bank.

Ends

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