Equity Bank Group, Kenya’s largest Bank by market value has revealed in its latest Annual Report that it has acquired an additional 7 per cent in Pro Credit Bank Limited at a cost of Sh 2.2 Billion (US$ 21 Million).
The transaction now takes Equity’s shareholding in the Congo Business to 86 per cent, having acquired a controlling 79 per cent stake back in 2015.
“On 30 September, 2016, additional capital of 782,046 new shares with a par value US$ 10 was issued by Pro Credit Bank Limited to EGHL for a cash consideration of US$ 21 Million (KShs. 2.202 Billion). The current shareholding is now 86% while the non-controlling interests are at 13% as at the end of year 2016.” Noted Equity Bank in the annual report.
The Bank said the acquisition is in line with its 3.0 Growth Strategy focusing on deepening banking services and enhance financial inclusion in Africa. The goodwill arising from acquisition consists largely of the synergies and economies of scale expected from combining the operations of Equity group Holdings Limited and Pro Credit Bank Limited.
Equity Bank also added that an additional capital of 10,000,000 new shares with a par value of US$ 3 was issued and paid by EGHL in Equity Bank South Sudan Limited for a consideration of US$ 31,060,233 (KShs 3.175 Billion).
Equity Group Holdings Limited currently has eleven wholly owned subsidiary companies as of December, 2016 and one partially owned at 86% (Dr Congo). All the subsidiaries except Equity Bank Uganda Limited, Equity Bank (Rwanda) Limited, Equity Bank Tanzania Limited, Equity Bank Southern Sudan Limited and Pro Credit Bank are incorporated in Kenya.