This archive report was first published on 3 January 2020.
Published on January 3, 2020, Equity Group and Atlas Mara announced they would review the terms of their deal to acquire four banks in Rwanda, Zambia, Tanzania, and Mozambique.
The deal, initially valued at Sh10.6 billion, would have seen Equity acquire the banks in exchange for a 6.72 percent stake in the company, valued at Sh13.6 billion.
However, the parties have since announced they had not signed a binding agreement, citing undisclosed reasons, and are now engaged in renegotiations.
"While there is no assurance that the potential transaction will be concluded on the terms previously announced, the parties continue to be engaged in discussions," Atlas Mara stated.
The pressure to renegotiate the deal is likely due to a divergence in fortunes between Equity and the four banks it is eyeing, with Equity's share price increasing by 32.5 percent since the deal was announced, while the Atlas Mara banks are making aggregate losses.
