Equity Group Makes Progress On Acquisition Plans In DRC through a planned Ksh10.5 billion takeover
Equity Group Holdings, (EGH) has entered into a share purchase agreement with George Arthur Forrest, to purchase 66.53% of the shares held by Mr. Forrest in Banque Commercial du Congo (BCDC), a public limited company licensed by the Banque Central du Congo in the Democratic Republic of Congo (DRC).
Following completion of the transaction, the BCDC business will eventually be amalgamated with that of Equity Group’s existing banking subsidiary in DRC, Equity Bank Congo S.A. (EBC). 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 EGH.
The Agreement specifies that Equity will pay a cash consideration of 105 million dollars 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.
Equity also proposes to increase its shareholding in Equity Bank Congo. In this regard, Equity shareholders approved the purchase by EGH of the shares held by KfW comprising 7.6% of the issued share capital of EBC following the exercise of a put option granted to KfW under 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.
Equity Group Holdings Plc CEO and Managing Director, Dr. James Mwangi said 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.
By acquiring BCDC and the KfW stake in EBC, EGH will expand its footprint in DRC. The Group aims to provide access to competitive, tailored financial services to transform people’s lives and livelihoods, expand opportunities for wealth creation whilst also delivering significant value to its stakeholders.
Mr. George Arthur FORREST is happy to conclude the transaction with EGH knowing that his legacy is in the hands of the fastest developing Bank in Sub-Saharan Africa, already present in DRC, with the aspiration and capacity to develop and grow the offerings and financing of BCDC.