Equity Group has issued a cautionary notice on its plans to acquire a controlling stake of BCDC in the Democratic Republic of Congo. In a statement from the group’s CEO Dr James Mwangi, the bank said. “EGH hereby announces to the public that its Board of Directors have agreed to the entry into a non-binding term sheet with certain shareholders (the Selling Shareholders) of Banqué Commerciale du Congo (BCDC), for the purchase for cash of a controlling equity stake in BCDC (the Proposed Transaction), with a view to eventually amalgamating the business of BCDC with that of EGH’s existing banking subsidiary in DRC, Equity Bank Congo.”
The bank further stated that the proposed Transaction is subject to conditions that are customary to transactions of this nature, including but not limited to completion of due diligence, the entering of detailed transaction agreements, obtaining and shareholder approvals and the receipt of regulatory approvals from the Capital Markets Authority, the Central Bank of Kenya, the Central Bank of Congo and competition regulators (as applicable).
BCDC is licensed by the Central Bank of Congo to provide banking services in DRC.
By acquiring BCDC, EGH will be able to expand its footprint in Africa. Further, through the Proposed Transaction, EGH aims to provide access to competitive, tailored financial services to improve people’s lives and livelihoods whilst also delivering significant value to its stakeholders. The Proposed Transaction is an opportunity for EGH to deliver the 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.
“Until further announcements regarding the Proposed Transaction are made, the shareholders of EGH and other investors are advised to exercise caution when dealing in EGH ordinary shares on the Nairobi Securities Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange,” concluded the statement.