Equity Group has completed the acquisition of a 99.13% ownership in Compagnie Générale De Banque (Cogebanque) for Ksh7.2 billion ($47 million), reaffirming its commitment to East African businesses.
The completion of its strategic acquisition of Rwanda’s Cogebanque marks an important step in its ongoing efforts to grow its footprint in East Africa — it comes as the lender under Mwangi wants to diversify and increase its earnings outside of the Kenyan market.
The Ksh7.2 billion ($47 million) acquisition price underscores the conglomerate’s commitment to reinforcing its businesses, with Cogebanque being formally a subsidiary of Equity Group.
Nairobi-based lender executed a share purchase agreement with sellers on July 28, 2023, and offered minority shareholders the same price per share for the latest deal.
Equity Group brokered a deal with minority shareholders to acquire shares worth Ksh.528.4 million ($3.5 million) on November 30, 2023.
The company has reported a 5.3-percent year-on-year increase in profit, reaching Ksh.36.2 billion ($237.4 million) in the nine months ending September 30, 2023.
The growth was fueled by double-digit growth from East African subsidiaries, including those in the Democratic Republic of Congo, Uganda, Rwanda, and Tanzania.
Equity Group’s success is attributed to the increasing influence of its subsidiaries, particularly the DRC unit, according to Managing Director and Chief Executive Dr. James Mwangi.
The DRC unit, comprising 60% of Kenya’s assets, has significantly contributed to the group’s profits, surpassing other subsidiaries and even outperforming the Kenyan unit.
