The agreement will see KCB acquire an 85% stake in the DRC-based bank.
For not less than two years, the existing shareholders of TMB will continue to hold their stake, which will also be acquired by the Nairobi, Kenya headquartered bank.
As per the agreement, KCB will pay for the transaction in cash and the value will be determined by the net asset value of TMB at the completion of the proposed acquisition, and using a price to book multiple of 1.49.
With $1.5bn in total assets and a branch network of 110, TMB is among the top players in the DRC, with operations in retail, SME, corporate and digital banking.
Through the deal, KCB hopes to scale its regional presence and bolster its retail and corporate banking franchise.
TMB will give KCB access to Africa’s second-largest country with a population of more than 93 million, the firm noted.
KCB Group chairman Andrew Wambari Kairu said: “This is part of our ongoing strategy to tap into opportunities for new growth while investing in and maximising returns from the Group’s existing businesses.
“It gives us strong headroom to accelerate our growth ambitions to deliver better value for our shareholders and to bolster the push for deeper financial inclusion and social and economic transformation in Africa and beyond.”
TMB chairman Robert Levy said: “We are very excited about the opportunities KCB offers in this transaction and we are proud to bring our unique DRC insights and experience to the KCB Group.
“We believe that by combining our local knowledge and standing with the size and expertise of KCB Group, we should be able to increase market share and shareholder value through unlocking our synergies and business opportunities.”
The deal, which is yet to receive regulatory and shareholder approval, is anticipated to close by the end of the third quarter of 2022.