Inside Details of How Equity Sealed Deal to Acquire Rwandan Bank

Ambitious Kenyan bank hits a milestone in its regional expansion after concluding Cogebanque acquisition

Equity Group Holdings (EQH) has completed the acquisition of Rwanda’s Compagnie Générale de Banque, better known as Cogebanque. The banking conglomerate announced that EGH had fulfilled the conditions set for the acquisition of Cogebanque, one of the top 5 banks in Rwanda.

Equity Managing Director and CEO, Dr James Mwangi, said the transaction was completed on 30th November 2023. Equity Group now owns 198,250 shares, representing 99.1250%, of the issued share capital of Cogebanque, making it a subsidiary of Equity Bank.

>> Bank Making Loss While Others are Swimming in Profits

“EGH is pleased to inform its shareholders and the public that the conditions precedent to the Cogebanque Acquisition including the receipt of all requisite corporate and regulatory approvals have been fulfilled and/or waived (as applicable),”he said.

He said EGH will commence the process of amalgamating the business of Cogebanque with that of Equity Rwanda after receiving final regulatory approval for the merger.

On 14th June 2023, EGH published a notice of its entry into a binding term sheet with the Government of Rwanda, the Rwanda Social Security Board, Sanlam Vie Plc and Ms. Judith Mugirasoni (collectively the Sellers) for the purchase of 91.93% of the issued shares in the capital of Cogebanque (the Cogebanque Acquisition) with a view to eventually amalgamating the business of Cogebanque with that of EGH’s existing banking subsidiary in Rwanda, Equity Bank Rwanda Plc (Equity Rwanda).

Equity Cogebank deal
Musoni Celestin (left), Chief Financial Officer, Sanlam Vie Plc, Hannington Namara, Equity Bank Rwanda Managing Director, Mary Wangari Wamae, Group Executive Director of Equity Group Holdings Plc, Hon Richard Tushabe, Minister of State in charge of National Treasury, Guillaume Habarugira, CEO, COGEBANQUE Plc and Philippe Watrin, Chief Investment Officer, Rwanda Social Security Board during the completion of the acquisition of COGEBANQUE in Kigali, Rwanda.

The announcement specified that completion of the Cogebanque Acquisition was subject to conditions customary to such transactions including completion of confirmatory due diligence, signature of definitive agreements, receipt of all regulatory approvals from, amongst others, the Central Bank of Kenya, the National Bank of Rwanda and, the COMESA Competition Commission and receipt of all applicable board and shareholder approvals.

Subsequently on 28th July 2023, EGH entered into a share purchase agreement (the Agreement) with the Sellers for the acquisition of 183,854 shares at a price of Rwanda Francs two hundred and ninety-seven thousand four hundred and six (RWF 297,406) per share.

>> Inside Deputy President Rigathi Gachagua’s Multi-Billion Tendering Complex

EGH simultaneously made an offer to the remaining shareholders of Cogebanque to acquire all their shares at the same price per share and on the same terms as set out in the Agreement with the intent that EGH would become the holder of up to 100% of the issued shares of Cogebanque.

The acquisition of Cogebanque will enable EGH to consolidate its position in Rwanda and is an important step towards the attainment of its vision of being Sub-Saharan Africa’s premier financial institution through delivering innovative products and services to customers, including, in particular, the effective use of technology.

EGH through the combined businesses of Equity Rwanda and Cogebanque, aims to provide even better access to competitive, tailored financial services to improve lives and livelihoods of the people of Rwanda, expand opportunities for wealth creation while also delivering significant value to its stakeholders.

Delayed approvals

The acquisition was projected to end in September this year but faced delays in obtaining the necessary approvals. At the end of 2022, Cogebank was the fifth largest bank in Rwanda by reported book value of total assets and shareholders’ equity. It serves customers in the corporate, small and medium sized enterprise and retail customer segment.

Rwanda’s Minister of Finance and Economic Planning Dr Uzziel Ndagijimana said, “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. Additionally, this partnership demonstrates investors’ confidence in Rwanda’s economic potential and presents new opportunities for the financial sector to thrive.”

>> Lupita Nyong’o Little Brother Charts His Own Path in Acting 

According to its recently released results as at 30th September 2023, Equity Group Holdings reported deposits growth of 20% to Kshs1,208.6 billion up from Ksh1,007.3 billion with subsidiaries contributing a 49% growth and Equity Bank Rwanda growing by 39%.

Loans grew by 26% to Ksh845.9 billion up from Ksh673.9 billion with subsidiaries contributing a 46% growth, and Equity Bank Rwanda growing by 20%. Total assets grew by 24% to Ksh1,691.2 billion up from Ksh1,363.7 billion again with subsidiaries contributing 47% and Equity Bank Rwanda growing by 40%.

>> Citizen TV Boss Owns Luxury Park in the Heart of Nyeri

Latest

Safaricom Reveals Strategic Secrets at Ethiopia Investor Day

Safaricom PLC on Saturday 22nd Feb 2023 held its second investor day in Addis Ababa, providing an opportunity for the investment community to gain insights into the company's achievements and future plans as well as see the progress so far in Ethiopia rollout.

Safaricom Investment Co-operative Pays Out Sh142.4 Million

Safaricom Investment Co-operative shareholders have approved a ksh142.4 million rebate payout during the 15th Annual General Meeting.

Firms Announce Merger Deal to Expand Services

Dalberg Implement, a leader in on-the-ground program implementation with vast expertise in strategy execution, and Axum, an Afrocentric impact firm dedicated to fostering inclusive growth across the Global South, have announced a merger.

Odibets Launches Mega Water Project In Makueni

Odi Mtaani Foundation by online betting company Odibets, in...

Follow Us

Newsletter

Don't miss

Throwing The Girls Into Deep End: Single Kiasi S3 First Look

Nairobi’s dating scene is about to get messy: Single Kiasi...

Win New Year Crossover Mugithi Tickets With Odibets

The event has attracted prominent Kikuyu musicians who will be headlining the event including Samidoh and Muigai wa Njoroge.

For Coloured Girls is Theatre Production of the Year

The play ‘For Coloured Girls (who have considered suicide/ when...

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.
KALU MENGO
KALU MENGOhttp://www.businesstoday.co.ke
Kalu Mengo is a Senior Reporter With Business Today. Email: [email protected]

Safaricom Reveals Strategic Secrets at Ethiopia Investor Day

Safaricom PLC on Saturday 22nd Feb 2023 held its second investor day in Addis Ababa, providing an opportunity for the investment community to gain insights into the company's achievements and future plans as well as see the progress so far in Ethiopia rollout.

Safaricom Investment Co-operative Pays Out Sh142.4 Million

Safaricom Investment Co-operative shareholders have approved a ksh142.4 million rebate payout during the 15th Annual General Meeting.

Firms Announce Merger Deal to Expand Services

Dalberg Implement, a leader in on-the-ground program implementation with vast expertise in strategy execution, and Axum, an Afrocentric impact firm dedicated to fostering inclusive growth across the Global South, have announced a merger.

LEAVE A REPLY

Please enter your comment!
Please enter your name here