Equity Group Holdings PLc, through Equity Bank Kenya Limited (EBKL) announced on February 1, 2023, that it had completed the acquisition of certain assets and liabilities of Spire Bank Limited after obtaining all the required regulatory approvals.
The completion of the acquisition followed the Assets and Liabilities Purchase Agreement, which was announced in September 2022.
Following the acquisition, the Group’s branches currently stand at 365 after Equity Bank Kenya Limited took over Spire Bank’s 12 branches, as well as all existing depositors in Spire Bank, other than remaining deposits from its largest shareholder, Mwalimu Sacco.
Additionally, Spire Bank transferred approximately 20,000 deposit customers to Equity Bank – worth around Ksh.1.3 billion, and 3,700 loan customers that had outstanding loan balances reported at a net carrying value after statutory loss provisions of Ksh.900 million.
Mwalimu Sacco, however, the sole shareholder in Spire Bank, would pay Equity Group Holdings Plc Ksh.510.7 million to cover the difference between the distressed bank’s assets and liabilities, hence the P/Bv (Price to Book Value ration) multiple in the transaction was inconsequential.
This acquisition makes Equity Bank Kenya home to over 100,000 teachers spread throughout Kenya.
Currently, Equity processes a total monthly remittance of Ksh.1.8 billion in teachers’ salaries.
In September last year, Equity Group Chief Executive Dr. James Mwangi disclosed that 43,000 teachers have borrowed loans valued at Ksh.33 billion with a monthly repayment of Ksh.800 million.
In addition, Equity is home to over 24,000 ECDE institutions and primary schools, and over 4,000 secondary schools