Wednesday, June 24, 2020

Equity stops Acquisition of new Bank Branches from Atlas Mara

    June 24, 2020   No comments

Equity Bank Kenya

Equity Bank Group has announced discontinuation of the discussion meant to acquire bank branches from Atlas Mara (ATMA) in new territories.

In its quest to expand to new markets, the bank proposed last year, getting branches in Mozambique, Zambia, Rwanda and Tanzania under currently under the management of ATMA.

Due to the uncertainty as caused by the COVID-19 pandemic, both Equity Group Holdings and Atlas Mara agreed to bring the business discussion to a halt.

Speaking while announcing the Board’s decision, Dr. James Mwangi, Managing Director and CEO of EGH Plc said, “The Board has considered the events that have taken place since January when the two parties agreed to extend transaction discussions and particularly the impact of the COVID-19 pandemic to the world and the economies in which EGH operates. After careful consideration, EGH and ATMA have mutually agreed to discontinue discussions on the transaction for the foreseeable future.” 

The bank is currently focusing on helping customers especially during this Coronavirus pandemic. 

 “The Board’s Business Continuity Management is focused on conserving cash and liquidity and deploying it to support our customers to survive during this economic crisis and to recover and thrive post the crisis. A strong capital and liquidity position gives us the strength and capacity to cushion our business, accommodate and walk with our customers during these challenging times. We have deployed a defensive and offensive mechanism through loan accommodations and rescheduling/restructuring of up to 25% of the total loan book for periods of up to 36 months. This will enable our customers to go through the prevailing turbulence, while at the same time preserving cash to shore up the financial revival and growth of their businesses post the COVID-19 crisis.” Dr James Mwangi added. 

Equity is still committed to expanding its presence to various countries in the sub-sahara Africa.

 “The Group is committed to its strategic objective of expanding its footprint in Africa to provide access to competitive, tailored financial services to improve people’s lives and livelihoods whilst also delivering significant value to its stakeholders. At the same time, the Group continues with its vision of building sub-Saharan Africa’s premier financial institution through delivering innovative products and services to customers including in particular the effective use of technology self-service banking.” Dr Mwangi concluded. 
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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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