James Mwangi, Equity Group Holdings (EGH) CEO has expressed fears over delays in completion of Atlas Mara acquisition.
Furthermore, Dr Mwangi says that there is currently no certainty that a transaction will materialize. According to Dr Mwangi, Equity Group and Atlas Mara are yet to sign detailed transaction agreements and the binding term sheet has expired.
On 29 April 2019, Equity Group entered into a binding term sheet agreeing to exchange certain banking assets of Atlas Mara Limited in four African countries for shares in EGH.
However, the proposed transaction was subject to completion of confirmatory due diligence, the entering of detailed transaction agreements, and obtaining regulatory and shareholders approval.
Moreover, Equity Group will pursue further discussion with Atlas Mara in early 2020 to try and reach mutually acceptable commercial terms with respect to the proposed transaction or a variant of it.
Furthermore, should the deal sail through EGH will have 62 per cent of Banque Populaire du Rwanda Plc, 100 per cent of share capital of African Banking Corporation Tanzania (ABCTz), 100 per cent of the share capital of ABC Zambia, and 100 of the share capital of ABC Mozambique.