This archive report was first published on 19 November 2019.
On November 19, 2019, Equity Group Holdings made a significant move in its expansion plans in the Democratic Republic of Congo's banking industry by acquiring a majority stake in Banque Commercial du Congo (BCDC).
The acquisition was made possible through a share purchase agreement with Mr. George Arthur Forrest, a Belgian entrepreneur and owner of the Forrest Group, who holds a majority stake in BCDC.
Forrest's Forrest Group has been active in various sectors, including wind power, hydroelectric energy, construction, mines, and metallurgy, since its founding in the Belgian Congo in 1922.
According to reports, Forrest is a philanthropic employer and one of the richest men in Congo.
The acquisition of BCDC's majority stake is subject to regulatory approvals from the Central Bank of Kenya, Banque Centrale du Congo, the COMESA Competition Commission, and the boards of BCDC and Equity Group Holdings.
Equity Group Holdings will pay a cash consideration of $105 million 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.
Equity Group Holdings has proposed to increase its shareholding in its existing banking subsidiary in DRC, Equity Bank Congo S.A. (EBC), by acquiring shares held by Kreditanstalt Für Wiederaufbau (KfW), comprising 7.6% of the issued share capital of EBC.
Equity Group Holdings CEO and Managing Director Dr. James Mwangi expressed his excitement about the acquisition, stating that it is a boost towards the vision of building sub-Saharan Africa's premier financial institution.
“George Arthur Forrest is happy to conclude the transaction with Equity Group Holdings knowing that his legacy is in the hands of the fastest developing Bank in Sub-Saharan Africa, already present in DRC, with the aspiration and capacity to develop and grow the offerings and financing of BCDC,” Dr. Mwangi said.
