Equity Group to purchase over half a million shares in BCDC worth Ksh10.6 billion
Equity Group Holdings has entered into a share purchase agreement with Commercial Bank of Congo to purchase 625,354 shares-owned by Arthur Forrest in Banque Commercial du Congo (BCDC) priced at Ksh10.6 billion.
In a statement by Equity, the agreement was subject to regulatory approvals from among others; the Central Bank of Kenya (CBK), Banque Centrale du Congo, COMESA Competition Commission, by the end of December 2019.
“Equity will pay a cash consideration of USD 105 million (Ksh10.6 billion) for the 625,354 shares to be purchased inclusive of dividends declared after January 1, 2019, in respect of the financial year ending on December 31, 2019. i.e. a cum-dividend price per share of USD 167.9 per share.’ Reads the statement.
Upon the completion of the transaction, the BCDC business will eventually be merged with that of EGH’s existing banking subsidiary in DRC, Equity Bank Congo S.A. (EBC).
Equity Group Holding CEO and Managing Director, Dr. James Mwangi said this was 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.
In September, the lender entered into an agreement to acquire majority shares in ProCredit, which is the leading bank in the SME sector in the DRC.
Dr. Mwangi said the proposed acquisition of ProCredit, an SME focused bank in the DRC, provides Equity Group with a great platform to further the Group’s growth objectives while extending its mission of financial inclusion across Africa.
“At EGHL, we are excited to announce the proposed acquisition of a majority stake in ProCredit which is one of the fastest-growing banks in the DRC. This acquisition dovetails with our Equity 3.0 growth strategy as part of our commitment to deepen banking services and enhance financial inclusion in Africa,” said Dr Mwangi.
BCDC is majority-owned by Belgian entrepreneur George Arthur Forrest and family (66.53 per cent) and the government of the DRC (25.53 per cent), while the remaining 7.94 per cent shares are owned by other minority shareholders.
It is the second-largest bank in DR Congo with about 29 branches across the country including key cities Kinshasa, Goma and Lubumbashi. It has an asset base of about $700 million – equivalent to KSh. 70 billion.