NAIROBI, June 23 (Xinhua) — Kenya’s Equity Bank said Tuesday it has discontinued talks to acquire banking businesses from Atlas Mara (ATMA) in Rwanda, Tanzania, Zambia and Mozambique due to impacts of COVID-19.
James Mwangi, CEO of Equity Group Holdings (EGH) said in a statement the decision is consistent with the bank’s view of uncertainty of risk which precipitated the proposed withdrawal of its dividend payout to shareholders.
"The board has considered the events that have taken place since January when the two parties agreed to extend transaction discussions and particularly the impact of the COVID-19 pandemic to the world and the economies in which EGH operates. After careful consideration, EGH and ATMA have mutually agreed to discontinue discussions on the transaction for the foreseeable future," Mwangi said.
Mwangi said that the bank’s decision is in line with its business continuity management that speaks to risk assessment, approach to prudent risk mitigation and management in the prevailing economic slowdown occasioned by the COVID-19 pandemic in the region and globally.
He noted that Equity Bank is currently focused on conserving cash and liquidity and deploying it to support its customers to survive during this economic crisis and to recover and thrive post the crisis.
Mwangi added that the regional bank is committed to its strategic objective of expanding its footprint in Africa to provide access to competitive, tailored financial services to improve people’s lives and livelihoods whilst also delivering significant value to its stakeholders. Enditem
