Equity Completes Acquisition Of Rwandan Bank For KSh 7.2b

• Equity now holds 198,250 shares, equivalent to 99.1250% of Cogebanque's issued share capital, officially designating the lender as its subsidiary
• The journey towards the acquisition began on June 14, 2023, when Equity disclosed its commitment to acquire 91.93% of Cogebanque's issued shares
• Equity Bank Group and KCB Group are also among Kenya's top lenders taking a significant share of the Democratic Republic of Congo (DRC) market

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Equity Group Holdings has successfully acquired Rwandan bank Compagnie Générale de Banque (Cogebanque) Plc, marking a significant milestone in its regional expansion strategy.

The completion of the KSh 7.2 billion deal on November 30, 2023, followed the fulfilment of conditions precedent, including regulatory and corporate approvals.

Equity now holds 198,250 shares, equivalent to 99.1250% of Cogebanque's issued share capital, officially designating the lender as its subsidiary.

"We are delighted to welcome Cogebanque’s employees and customers to Equity Group. Through our focus on innovation, cutting-edge technology, and superior service, we aim to provide enhanced financial services, improve lives, expand opportunities for wealth creation, and deliver significant value to all our stakeholders in Rwanda," Equity group managing director James Mwangi said.

How Equity is expanding in Rwanda

The journey towards the acquisition began on June 14, 2023, when Equity disclosed its commitment to acquire 91.93% of Cogebanque's issued shares from the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Judith Mugirasoni.

The deal will see Equity Bank branches in Rwanda increase by 28 even as the lender strengthens its competitive edge.

Equity bank is expected to pay a cash consideration of KSh 36,485 per ordinary share of 183,854 total shares.

DRC market

The Democratic Republic of Congo (DRC) officially joined the East African Community (EAC) in a deal allowing the free movement of people and goods.

Several businesses expressed interest in the market that boasts over 93 million people.

Equity Bank Group and KCB Group are among Kenya's top lenders, taking a significant share of the Democratic Republic of Congo (DRC) market.

KCB Group acquired a majority stake of 85% in the DRC's lender, Trust Merchant Bank (TMB).

"This aligns with our current strategy tapping new growth opportunities as we maximise returns the business. It defines our ambitions to offer efficient and valuable services to our customers and stakeholders for economic transformation in Africa and beyond," KCB stated.