Equity Group Holdings Plc has today announced plans to acquire a 91.9% stake in Compagnie Générale de Banque (Cogebanque) Plc, a bank licensed to operate in Rwanda by the National Bank of Rwanda. The acquisition will increase Equity Group’s footprint in Rwanda when added to the already established Equity Bank Rwanda Plc, which began its operation in 2011.
“Through the combined business of Equity Bank Rwanda Plc and Cogebanque, Equity Group aims to provide even better access to competitive, tailored financial services to improve the lives and livelihoods of people in Rwanda, expand the opportunities for wealth creation, and also deliver significant value to its stakeholders,” said Equity Group.
Read more: Equity Bank Announces 46.1 Billion Net Profit for FY’2022
The completion of the acquisition is subject to approval from the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission, and shareholders and board members of Congebanque Plc.
Equity Group is expected to pay a cash consideration of Rwf 57.7 billion (Kshs 6.7 billion) for the 183,854 ordinary shares to be purchased and will be entitled to all the dividends declared after January 1, 2023.
As of December 31, 2022, Congebanque Plc had a net asset of Rwf 47.3 bn (Kshs 5.8 bn) and registered a profit after tax of Rwf 9.1 bn (Kshs 1.1 bn).
“The Congebanque acquisition is also an opportunity for Equity Group Holding to take further steps towards attaining its vision of being Sub-Saharan Africa’s premier financial institution through delivering innovative products and services to customers,” added Equity.
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