Equity Group Holdings, (EGH) has entered into a share purchase agreement with George Arthur Forrest, to purchase 66.53% of the shares held by Mr. Forrest in Banque Commercial du Congo (BCDC).
After the deal, BCDC will be amalgamated into Equity Bank Congo S.A. (EBC). The Agreement is subject to regulatory approvals from relevant authorities in the region.
EGH will pay a cash consideration of USD $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 i.e. a cum-dividend price per share of USD 167.9 per share.
EGH also proposes to increase its shareholding in EBC and is set to purchase shares held by KfW comprising 7.6% subject to the approval of Banque Centrale du Congo.
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.
By acquiring BCDC and the KfW stake in EBC, EGH will expand its footprint in DRC. The Group aims to provide access to competitive, tailored financial services to transform people’s lives and livelihoods, expand opportunities for wealth creation whilst also delivering significant value to its stakeholders.