Equity Group has announced that its Board of Directors have agreed to enter a non-binding term sheet with selling shareholders of Banqué Commerciale du Congo (BCDC), for the purchase of cash of a controlling equity stake with a view to eventually consolidating the business of BCDC with that of Equity Group existing banking subsidiary in DRC, Equity Bank Congo.
BCDC is licensed by the Central Bank of Congo to provide banking services in DRC and by acquiring it Equity Group will be able to expand its footprint in Africa.
“Through the proposed transaction, Equity aims to provide access to competitive, tailored financial services to improve people’s lives and livelihoods whilst also delivering significant value to its stakeholders. This will be an opportunity to deliver the vision of building sub-Saharan Africa’s premier financial the institution through delivering innovative products and services to customers, including, in particular, the effective use of technology,” read the statement by Equity group CEO, James Mwangi.
However, the Proposed Transaction is subject to conditions that are customary to transactions of this nature, including but not limited to completion of due diligence, the entering of detailed transaction agreements, obtaining and shareholder approvals and the receipt of regulatory approvals from the Capital Markets Authority, the Central Bank of Kenya, the Central Bank of Congo and competition regulators as applicable.
“Until further announcements regarding the Proposed Transaction are made, the shareholders of EGH and other investors are advised to exercise caution when dealing in EGH ordinary shares on the Nairobi Securities Exchange, the Uganda Securities Exchange, and the Rwanda Stock Exchange,” he added.