Equity Group Holdings (EGH) has announced plans to acquire banking assets of Atlas Mara in four African countries in a transaction to be done through shares swap.
This follows an agreement into the deal by Equityâ€™s Board of Directors. Atlas Mara is a financial services company listed on the London Stock Exchange.
Equity expects to allot approximately 252,482,300 new ordinary shares. The monetary value of the consideration to be paid is the equivalent of approximately KShs10.7 billion (UShs396.8 billion).
â€śBoard of Directors have agreed to the entry into a binding term sheet through a share swap to exchange certain banking assets of Atlas Mara in four countries for shares in Equity Group,â€ť said James Mwangi (in featured photo), Equity Group Holdings CEO.
Details of the deal include a 62 per cent of the share capital of Banque Populaire du Rwanda, 100 per cent pf the share capital of African Banking Corporation Zambia, 100 per cent of the share capital of African Banking Corporation Tanzania and 100 per cent of the share capital of African Banking Corporation Mozambique.
Atlas Mara will become a shareholder in Equity Group Holdings.
Kenyaâ€™s National Treasury has on several occasions declared its wish to see more banks coming together to form larger units that are more stable. And there have been a few voluntary mergers and takeovers including the pending finalising of a marriage between NIC Bank and Commercial Bank of Africa.
During the month of April, Kenya Commercial Bank announced an offer to take over the troubled National Bank of Kenya.
The Government holds majority stakes in both banks, a pointer to the deal being a State intervention to save the troubled lender.
If successfully completed, it will create an entity valued at more than KSh900 billion (UShs33.3 trillion).