Equity Group Holdings Plc has completed the Compagnie Générale de Banque (Cogebanque) in Rwanda, marking a significant milestone in its regional expansion strategy.
The Group now holds 198,250 shares representing 99.1250% of the issued share capital of Cogebanque, following receipt of all regulatory and corporate approvals, officially making Cogebanque its subsidiary.
How Equity Group acquired Rwanda’s bank
Speaking during the Africa Green Industrialization Dinner hosted alongside the government of Kenya on Sunday, December 3, Equity Group Managing Director James Mwangi revealed that the lender is now the fourth strongest brand globally.
“Equity Group has grown regionally to become the 4th strongest banking brand globally, a testament to our commitment and impact in transforming lives, giving dignity and expanding opportunities for wealth creation,” said Mwangi.
The acquisition, completed on November 30, 2023, follows the fulfilment of conditions precedent to the acquisition, including regulatory and corporate approvals.
According to Metropol TV, the deal first disclosed in June 2023 is worth $47 million (KSh 7.2 billion, according to the current exchange rate) and was brokered between Equity and minority shareholders.
The completion of the acquisition was subject to various conditions, including confirmatory due diligence, execution of definitive agreements, regulatory approvals from the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission, and corporate approvals.
We are delighted to welcome COGEBANQUE’s employees and customers to Equity Group. Through our focus on innovation, cutting-edge technology, and superior service, we aim to provide enhanced financial services, improve lives, expand opportunities for wealth creation, and deliver significant value to all our stakeholders in Rwanda,” said Mwangi
The CEO added that the eventual merger of COGEBANQUE and Equity Bank Rwanda will consolidate Equity Group’s position in Rwanda and support the delivery of its overarching strategy, the Africa Recovery and Resilience Plan.
Equity Group’s financial performance
Equity Group’s financial results as of 30th September 2023, showed an increase of 20% in deposits to KSh 1,208.6 billion up from Kshs 1,007.3 billion with subsidiaries contributing a 49% growth and Equity Bank Rwanda growing by 39%.
Loans grew by 26% to Kshs 845.9 billion up from Kshs 673.9 billion with subsidiaries contributing a 46% growth, and Equity Bank Rwanda growing by 20%.
Total assets grew by 24% to Kshs1,691.2 billion up from Kshs1,363.7 billion again with subsidiaries contributing 47% and Equity Bank Rwanda growing by 40%.
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