Equity Group Acquires 62% of Congolese Bank at Ksh 10.3 Billion
Kevin Namunwa  |  Aug 12, 2020

Equity Group Holdings has acquired a majority stake in a Congolese bank as the bank aims to widen its scope in the continent.

The Kenyan lender paid Ksh 10.3 billion to acquire the majority stake of the Central African bank. Equity Group chief executive confirmed that the Kenyan bank had reached an agreement with George Forrest and met all regulatory approvals.

Equity Bank will acquire 625,354 shares which transforms to 66.53% of the Congolese lender.

Banque Commercial du Congo (BCDC), the bank acquired by Equity Holdings, was owned by George Forrest.

The Kenyan number two lender has been widening its scope as it races to the pinnacle of Kenya’s banking sector. The bank recently shelved plans to acquire the Atlas Mara, which is listed on the London Stock Exchange, citing challenges occasioned by the global pandemic.

The transaction would have seen Equity acquire a 62% stake at Banque Populaire du Rwanda (BPR) and all of Atlas Mara’s subsidiaries in Zambia, Tanzania, and Mozambique.

The acquisition of the majority stake at the Congolese lender gets Equity Group back on track as it aims to become the number one lender in the country.

“EGH (Equity Group Holdings) is pleased to inform its shareholders and the public that the condition precedent in the acquisition, including the receipt of corporate and regulatory approvals, have been fulfilled and/or waived, and the acquisition was completed on August 7,” Equity Holdings CEO announced.

Equity Group Holdings now has two subsidiaries in the Democratic Republic of Congo having earlier acquired ProCredit, a German bank. The lender aims to penetrate in the resource-rich economy of the Democratic Republic of Congo.

Mwangi further said that the acquisition of BCDC would inflate Equity’s balance sheet in excess of Ksh 216 billion. He said the merger would produce a subsidiary, contributing more than 20% of the group’s total balance sheet.

“We take this opportunity to welcome BCDC directors and employees to the EGH Group and look forward to working together to provide BCCDC’s current and new customers with access to competitive, tailored financial services to improve people’s lives and livelihoods whilst also delivering significant value to our stakeholders,” Mwangi noted.

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