Equity Group Holdings (EGH) Plc has announced it has entered into a deal to acquire a majority stake in Banque Commercial du Congo (BCDC), the second-largest bank in the Democratic Republic of Congo (DRC).
This is happening as EGH steps up its ambitious geographical diversification strategy.
Equity Group Holdings Plc CEO and Managing Director, Dr. James Mwangi said, “ This is an opportunity for the Group to take further steps towards the delivery of its vision of building sub-Saharan Africa’s premier financial institution through delivering innovative products and services to customers, including, in particular, the effective use of technology.”
EGH has purchased a 66.53 per cent majority stake in Banque Commercial du Congo (BCDC), a bank licensed in the Democratic Republic of Congo (DRC).
This purchase Agreement specifies that EGH will pay a cash consideration of US$ 105 million for the 625,354 shares to be purchased inclusive of dividends declared after 1st January 2019 in respect of the financial year ending on 31 December 2019, at the price of US$ 167.9 per share.
EGH will pay for the majority shares held at BCDC by Mr. George Arthur Forrest, a financial institution licensed by the Banque Central du Congo in the DRC.
BCDC is a public limited company (société anonyme – S.A.) licensed by the Banque Central du Congo (the Central Bank of the Democratic Republic of Congo) to provide banking services in DRC.
The Bank traces its origins to 1909 when it was founded as Banque du Congo Belge. BCDC is the second largest bank in the Democratic Republic of the Congo as measured by balance sheet and shareholders’ equity.
“Mr. George Arthur FORREST is happy to conclude the transaction with EGH knowing that his legacy is in the hands of the fastest developing Bank in Sub-Saharan Africa, already present in DRC, with the aspiration and capacity to develop and grow the offerings and financing of BCDC,” said Dr Mwangi
EGH also proposes to increase its shareholding in its already existing subsidiary Equity Bank Congo S.A. (EBC).
In this regard, EGH shareholders approved the purchase by EGH of the shares held by Kreditanstalt Für Wiederaufbau (KfW) comprising 7.6 per cent of the issued share capital of EBC following the exercise of a put option granted to KfW under a Shareholders Agreement relating to EBC, entered into between among others EGH and KfW.The proposed acquisition of the shares held by KfW is also subject to the approval of Banque Centrale […]
