Equity Group Holdings (EGH) PLC has completed the acquisition of Compagnie Générale de Banque (Cogebanque) PLC, marking a significant milestone in its regional expansion strategy.
The acquisition follows the fulfillment of conditions precedent to the acquisition, including regulatory and corporate approvals and was completed on November 30, 2023.
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.
EGH now holds 198,250 shares representing 99.125 per cent of the issued share capital of COGEBANQUE, officially making COGEBANQUE its subsidiary.
“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 Uzziel Ndagijimana, the Minister of Finance and Economic Planning.
“Additionally, this partnership demonstrates investors’ confidence in Rwanda’s economic potential and presents new opportunities for the financial sector to thrive,” added Ndagijimana.
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The expansion of Equity Group’s business in Rwanda aims to bolster Rwanda’s financial services landscape and fortify the Group’s commitment to catalyzing socio-economic development across the African continent.
“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 Equity Group Managing Director (MD) and Chief Executive Officer (CEO) James Mwangi.
“This strategic alignment is designed not only to meet the diverse needs of our customers but also to catalyze economic growth, empower local communities, and contribute to the realization of the Group’s vision as Sub-Saharan Africa’s premier financial institution,” added Equity Group boss.
For the trading period to 30th September 2023, Equity Group’s loans grew 26 per cent to Ksh845.9 billion up from Ksh673.9 billion with subsidiaries contributing a 46 per cent growth, and Equity Bank Rwanda growing by 20 per cent.
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The Group’s total revenue rose 28 per cent during the review period to Ksh130.4 billion compared to Ksh102.4 billion posted over the same period the previous year.
Equity Group deposits grew 20 per cent to Kshs1.2 trillion up from Ksh1 trillion, with Equity Bank Kenya contributing 51 per cent after a growth of 4 per cent while subsidiaries contributed a 49 per cent growth driven by deposit growth of 28 per cent in DRC, 32 per cent in Uganda, 39 per cent in Rwanda and 56 per cent in Tanzania.