Equity Group Holdings regional expansion has gone a notch higher following the lender’s entry into a share purchase agreement with George Arthur Forrest, to acquire 66.53% of the shares held by Forrest in Banque Commercial du Congo (DRC) valued at 10.5 billion shillings.
The deal paves way for amalgamation of BCDC business with that of Equity Group Holdings existing banking subsidiary in DRC, Equity Bank Congo S.A.
The Agreement is subject to regulatory approvals from amongst others, the Central Bank of Kenya, Banque Centrale du Congo, the COMESA Competition Commission and the board approvals of BCDC and Equity.
Equity Group Holdings CEO Dr James Mwangi says in a statement, ” this is an opportunity for the Group to take further steps towards the delivery of its vision of building sub-Saharan Africa’s premier financial institution through delivering innovative products and services to customers, including, in particular, the effective use of technology.’”
The Agreement specifies that EGH will pay a cash consideration of US Dollars one hundred and five million (USD 105 million) for the 625,354 shares to be purchased inclusive of dividends declared after 1st January 2019 in respect of the financial year ending on 31 December 2019 i.e. a cum-dividend price per share of USD 167.9 per share.
Equity Group also proposes to increase its shareholding in Equity Bank Congo. In this regard, Equity Group Holdings shareholders approved the purchase by Equity Group Holdings of the shares held by KfW – Kreditanstalt Für Wiederaufbau comprising 7.6% of the issued share capital of Equity Bank Congo S.A. following the exercise of a put option granted to KfWunder a Shareholders’ Agreement relating to EBC, entered into between among others EGH and KfW.
The proposed acquisition of the shares held by KfW is also subject to the approval of Banque Centrale du Congo.
In addition to Equity Bank Kenya, the Group has banking subsidiaries in, Rwanda, Uganda, South Sudan, Tanzania and DRC with additional non-banking subsidiaries engaged in among others provision of investment banking, custodial, insurance agency.