Equity spends Ksh7.2B to acquire Rwandan bank
Equity Group Holdings (EGH) has completed the acquisition of 99.125 per cent shareholding in Rwanda's Cogebanque for Ksh7.2 billion.
In a statement on Friday, December 1, 2023, Equity Group CEO James Mwangi said that the bank is looking to combine the operations of the new acquisition with that of its subsidiary in the country, Equity Bank Rwanda.
Initially, the Kenyan lender was planning to acquire 183,854 shares for RWF 297,406 per share. Through an offer to the remaining shareholders, Equity managed to buy 198,250 shares representing 99.125 per cent of Cogebanque total shares.
"EGH is pleased to inform its shareholders and the public that the conditions precedent to the Cogebanque Acquisition including the receipt of all requisite corporate and regulatory approvals have been fulfilled and/or waived (as applicable). EGH’s acquisition of Cogebanque was completed on 30 November 2023 and EGH now owns 198,250 shares representing 99.1250% of the issued share capital of Cogebanque, making Cogebanque its subsidiary," Mwangi stated.
"EGH will commence the process of amalgamating the business of Cogebanque with that of Equity Rwanda after receiving final regulatory approval for the merger."
Equity's journey in the acquisition
In June, Equity published a notice of its entry into a binding term sheet with the Government of Rwanda, the Rwanda Social Security Board, Sanlam Vie Plc and Judith Mugirasoni for the purchase of 91.93 per cent of the issued shares in the capital of Cogebanque.
On July 28, 2023, the Kenyan lender entered into a share purchase agreement with the sellers for the acquisition of 183,854 shares.
"EGH simultaneously made an offer to the remaining shareholders of Cogebanque to acquire all their shares at the same price per share and on the same terms as set out in the Agreement with the intent that EGH would become the holder of up to 100% of the issued shares of Cogebanque," Mwangi added.
"EGH through the combined businesses of Equity Rwanda and Cogebanque, aims to provide even better access to competitive, tailored financial services to improve lives and livelihoods of the people of Rwanda, expand opportunities for wealth creation whilst also delivering significant value to its stakeholders."