Equity bank will have to wait a little bit longer before the plan of buying four banks materialises.
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The bank which is headquartered in Nairobi, Kenya, is keen to venture into Tanzania, Rwanda, Mozambique and Zambia markets, a move that will boost her outreach.
Already, the bank enjoys a huge market in Kenya, Uganda and Africa’s youngest nation, South Sudan.
The bank, according to Business Daily , issued a notice informing shareholders that the binding agreement for the proposed Sh10.7 billion share swap deal with Atlas Mara Limited (ATMA) has lapsed, opening the way for one of the parties to walk away from the transaction.
“Equity Group Holdings hereby confirms that, as of the date of this announcement, the parties have yet to sign detailed transaction agreements and the Binding Term Sheet has expired,” Mr James Mwangi, Equity CEO, said in a notice quoted by Business Daily .
“Equity and ATMA (Atlas Mara) expect to continue further discussions in early 2020 to try reach mutually acceptable commercial terms with respect to the proposed transaction or a variant of its,” added the notice.
Bank’s shareholders were also notified that the deal could fail to materialise.
Equity started as a Sacco in 1986 before it expanded becoming Kenya’s second-largest bank by assets after Kenya Commercial Bank.