Equity Group holdings (EGH) has completed the acquisition of a 66.53 per cent stake in Banque Commerciale Du Congo (BCDC) for $95 million following receipt of corporate and regulatory approvals.
The move will see BCDC become a subsidiary of EGH which will be amalgamated with Equity Bank Congo S.A effective 7 August 2020.
Equity Group – BCDC deal was announced on 18 November 2019 when EGH entered into a share purchase agreement to purchase 66.53 per cent of the shares of BCDC for a consideration of $105 million. However, due to the adverse effects of COVID19 and other events since the entry into the agreement, EGH and the seller agreed to a reduction in the consideration by $10 million.
EGH now has two subsidiaries in the Democratic Republic of Congo, Equity Bank Congo and BCDC, whose amalgamation and merger will create a bank with a balance sheet in excess of $2 billion. The merged entity is expected to contribute 20 percent of the Group’s total balance sheet.
Dr. James Mwangi, EGH Chief Executive, is confident that the merged entity will be the largest banking entity in DRC within one year. Further, he praised the move as it puts the Group on the path to become a Ksh1 trillion balance sheet business.