This archive report was first published on 2 January 2020.
January 2, 2020 - Regional lender Equity Group Holdings' ambitious plan to acquire four banks in Rwanda, Zambia, Mozambique, and Tanzania has hit a snag, with the bank failing to reach a buyout deal within the set deadline.
The proposed Ksh10.7 billion ($107 million) share swap deal with Atlas Mara Limited (ATMA) has lapsed, opening the way for one of the parties to walk away from the transaction.
Equity Group Holdings CEO James Mwangi confirmed in a notice that the parties had yet to sign detailed transaction agreements, and the binding term sheet had expired.
While cautioning shareholders that the deal could fail to materialize, Equity Group Holdings expressed optimism that further discussions with Atlas Mara would lead to a mutually acceptable commercial agreement.
Under the proposed deal, Equity Group Holdings would have acquired 62% of the share capital of Rwanda's Banque Populaire du Rwanda and 100% of African Banking Corporation of Zambia, African Banking Corporation Tanzania, and African Banking Corporation Mozambique.
Atlas Mara, on the other hand, was set to receive shares equivalent to a 6.72% stake in Equity Bank valued at Ksh10.9 billion ($109 million).
