Equity Group Holdings Plc has announced its proposed acquisition of 91.93% of the issued share capital of Compagnie Générale De Banque (Cogebanque) PLC Ltd for a consideration of RWF54.68 billion (USD 48.17 Million). The bank said that the binding term sheet has been signed with the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Ms. Judith Mugirasoni, the sellers involved in the transaction. The purpose of the acquisition is to eventually merge the operations of Cogebanque with EGH’s existing banking subsidiary in Rwanda, Equity Bank Rwanda Plc. Equity Bank said it intends to extend an offer to the remaining shareholders to acquire all their shares in Cogebanque, aiming to become the holder of 100% of the issued shares.
Cogebanque is a leading commercial bank in Rwanda, licensed and regulated by the National Bank of Rwanda (BNR). Since its incorporation on July 17, 1999, Cogebanque has experienced impressive growth, establishing 23 branches across the country to date.
The completion of the Cogebanque Acquisition is subject to customary conditions for transactions of this nature. These conditions include confirmatory due diligence, the signing of definitive agreements, regulatory approvals from institutions such as the Central Bank of Kenya, Banque Nationale du Rwanda (BNR), and the COMESA Competition Commission. Additionally, board and shareholder approvals are required. Upon completion, Cogebanque will become a subsidiary of EGH.
Cogebanque, as of the end of 2022, was the fifth largest bank in Rwanda based on reported book value of total assets and shareholders’ equity. It serves corporate, small- and medium-sized enterprise, and retail customer segments through 28 branches, around 600 active bank agents, and 36 automated teller machines.
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