Equity Bank to Pay Final ksh 2.1 billion in DR Congo Bank Acquisition

Equity Bank Group CEO Dr James Mwangi 

Equity Bank Group is set to pay the final amount of ksh 2.1 billion in order to finalise stake buying in a DRC bank.

Before COVID-19 pandemic, Equity had started the process of getting 66.5 per cent stake of Banque Commerciale Du Congo, a move to help in diversifying its footprint in the sub sahara region.

Equity Bank however announced making the payment of the remaining balance in bits through an escrow account in order to protect against any unforeseen unfavourably outcome.

In 12 months after acquisition, the owners of BCDC will receive half of the remaining ksh 2.1 billion. The other half will be paid after another 12 months.

Equity Bank already has a subsidiary operating in DRC. With this acquisition, the two will be merged together ( Equity Bank Congo and BCDC) and will make Equity Bank the biggest in that country.

"Following the BCDC acquisition, Equity expects to amalgamate the business of BCDC with that of Equity Bank Congo to create a single entity that will own and operate the combined business of both banks," the lender said in the circular.

"Equity expects that, at that point, the combined entity will rank first in DRC in terms of the reported book value of shareholders' equity and second in terms of the reported book value of total assets."

Equity Bank Group also wanted to expand its footprint to Zambia and other Southern Africa countries through buying existing Bank branches owned by Atlas Mara (AMA).

Due to the ongoing Coronavirus pandemic, Equity Bank and AMA agreed to halt the process for now.

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