Equity Bank Subsidiaries: Kenya’s second largest bank, Equity Bank, is set to buy four banks in four AFrican countries. The bank has already entered into a preliminary agreement to buyout banks in Zambia, Mozambique, Tanzania and Rwanda.
These banks are owned by Atlas Mara Limited (ATMA) which is a firm listed on the London Stock Exchange.
The deal will see Equity enter Zambia and Mozambique by acquiring ATMA’s 100 percent shareholding in ABCZam and ABCMoz, respectively. It will also expand its wings in Tanzania by buying out ABCTz, while in Rwanda, it will take over a 62 percent stake in BPR currently controlled by ATMA.
Equity expects to allot approximately 252,482,300 new ordinary shares. The monetary value of the consideration to be paid is the equivalent of approximately Sh. 10.7 billion.
“Board of Directors have agreed to the entry into a binding term sheet through a share swap to exchange certain banking assets of Atlas Mara in four countries for shares in Equity Group,” said James Mwangi, Equity Group Holdings CEO.
Details of the deal include a 62 per cent of the share capital of Banque Populaire du Rwanda, 100 per cent pf the share capital of African Banking Corporation Zambia, 100 per cent of the share capital of African Banking Corporation Tanzania and 100 per cent of the share capital of African Banking Corporation Mozambique.
Currently, Equity Bank operates in five other markets which are Uganda, Tanzania, Rwanda, South Sudan and Democratic Republic of Congo.
