Equity Group Holdings Plc (EGH), has completed its acquisition of Rwanda’s bank, Compagnie Générale de Banque (Cogebanque) Plc.
- EGH now holds 198,250 shares representing 99.1250% of the issued share capital of COGEBANQUE, officially making the Rwandan lender its newest subsidiary.
- On June 14, 2023, EGH disclosed it had entered into a binding term sheet for the acquisition of 91.93% of COGEBANQUE’s issued shares from the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Judith Mugirasoni.
- On July 28, 2023, EGH entered into a share purchase agreement with the lender’s owners in which it agreed to acquire 183,854 shares at a price of Rwanda Francs 297,406 per share.
Simultaneously, EGH offered to acquire all the remaining shares from the rest of the COGEBANQUE shareholders, intending to acquire up to 100% of the issued shares of COGEBANQUE.
“The expansion of Equity Group’s business in Rwanda aims to bolster Rwanda’s financial services landscape and fortifies the Group’s commitment to catalyzing socio-economic development across the African continent,” said Equity Group Holdings Plc Managing Director and CEO, Dr. James Mwangi.
- According to its recently released results as at 30th September 2023, Equity Group Holdings reported deposits growth of 20% to Kshs1,208.6 billion up from Kshs 1,007.3 billion with subsidiaries contributing a 49% growth and Equity Bank Rwanda growing by 39%.
- Loans grew by 26% to Kshs 845.9 billion up from Kshs 673.9 billion with subsidiaries contributing a 46% growth, and Equity Bank Rwanda growing by 20%.
- Total assets grew by 24% to Kshs1,691.2 billion up from Kshs1,363.7 billion again with subsidiaries contributing 47% and Equity Bank Rwanda growing by 40%.
The acquisition follows the fulfilment of conditions precedent to the acquisition, including regulatory and corporate approvals. Because of its cross border nature, it required confirmatory due diligence, execution of definitive agreements, regulatory approvals from the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission, and corporate approvals.
“The consolidation of Equity Bank Rwanda Plc and COGEBANQUE will create a stronger and more resilient banking institution better equipped to serve the needs of the people of Rwanda and will contribute to Rwanda’s economic growth and development,” said Rwandan Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana.
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