Kenya’s regional bank, Equity Group Holdings, has entered into a share purchase agreement with George Arthur Forrest, to purchase 66.53 percent of his shares in Banque Commerciale du Congo (BCDC).
The news of the share purchase agreement was announced on Tuesday, 19 November 2019. The BCDC is a public limited company by the Banque Centrale du Congo in the Democratic Republic of Congo (DRC). Following the completion of the transaction, the BCDC business will eventually be amalgamated with that of Equity Bank’s existing banking subsidiary in DRC, Equity Bank Congo S.A (EBC).
Kenya’s largest lender, in terms of market value, is operational in eight African countries and aims to penetrate 15 markets of the continent by 2026.
The agreement is subject to regulatory approvals from the Central Bank of Kenya, Banque Centrale du Congo, the COMESA Competition Commission and the board approvals of BCDC and EGH, amongst others.
The agreement specifies that EGH will pay a cash consideration of 105 million dollars for the 625 354 shares to be purchased, inclusive of dividends declared after 1 January 2019 in respect of the financial year ending on 31 December 2019.
Equity Bank CEO, 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. He noted that this will be done through delivering innovative products and services to customers, including, in particular, the effective use of technology.
“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,” Equity Bank said in a statement issued in Nairobi.
Equity Bank 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, noted the statement.
– APA
