This archive report was first published on 9 September 2019.
Equity Group Holdings is marking 35 years of operation in Kenya with a significant expansion move in the Democratic Republic of Congo. The lender has announced plans to acquire Banque Commerciale du Congo (BCDC), the second largest bank in DRC by balance sheet and shareholders equity, in a move that is set to boost its standing in the central African country.
According to a notice filed with the Nairobi Securities Exchange on September 6, Equity Group Holdings has agreed to enter into a non-binding term sheet with certain shareholders of BCDC for the purchase of a controlling equity stake in the bank.
“The Proposed Transaction is subject to conditions that are customary to transactions of this nature, including but not limited to completion of due diligence, the entering of detailed transaction agreements, obtaining shareholder approvals and the receipt of regulatory approvals from the Capital Markets Authority, the Central Bank of Kenya, the Central Bank of Congo and competition regulators (as applicable),” Equity Group CEO James Mwangi said.
Equity Group Holdings already has a subsidiary in the DRC, having acquired Pro-Credit Bank in 2015 through a share swap deal that saw the Kenyan lender gain a 79% controlling stake. Last year, Pro Credit Bank rebranded to Equity Bank Congo.
Equity Bank Congo is the seventh largest lender in DRC, and has risen to be among the most profitable subsidiaries owned by the Kenyan firm which was founded in 1984.
