Equity Group Holdings has completed full acquisition of Rwanda’s fifth largest bank, Compagnie Générale de Banque (Cogebanque) Plc for Ksh 6.7 billion.
The transaction follows completion of corporate and regulatory approvals in Kenya and Rwanda on November 30, 2023 as Equity Group now holds 198,250 shares representing 99.125pc of the issued share capital of Cogebanque.
Equity Group Chief Executive Officer Dr James Mwangi has termed the new acquisition as another milestone in regional expansion and will help bolster Rwanda’s financial services landscape.
“The eventual merger of Cogebanque and Equity Bank Rwanda will consolidate Equity Group’s position in Rwanda and support delivery of its overarching strategy, the Africa Recovery and Resilience Plan,” he added.
Equity Group and Cogebanque entered into a binding term sheet on June 14, 2023 for the acquisition of 91.93pc of issued shares from the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Ms. Judith Mugirasoni (the Sellers).
The giant lender also offered to acquire all the remaining shares from the rest of the Cogebanque shareholders, intending to acquire up to 100pc of the issued shares of Cogebanque.
On July 28, 2023, EGH entered into a share purchase agreement with the Sellers by which it agreed to acquire 183,854 shares at a price of Rwanda Francs 297,406 per share (Ksh 6.7b)
“The consolidation of Equity Bank Rwanda Plc and COGEBANQUE will create a stronger and more resilient banking institution better equipped to serve the needs of the people of Rwanda and will contribute to Rwanda’s economic growth and development,” said Dr. Uzziel Ndagijimana, Rwanda Minister of Finance and Economic Planning.
