Equity Bank has announced its intentions to acquire Compagnie Generale de Banque plc limited which is among the biggest banks in Rwanda.
The Kenyan bank revealed that it has entered into a binding term sheet with the government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc and Ms. Judith Mugirasoni who are the collective sellers.
Equity Group will pay a total of Ksh6.73 billion for it to own and take control of 91.93 percent equity stake.
“We intend to make an offer to the remaining shareholders to acquire all their shares in Cogebanque at the same price per share with the intent that Equity Group Holdings will become the holder of 100 percent of the issued shares of Cogebanque,” said Equity Group CEO James Mwangi.
As of December 2022, Cogebanque was the fifth largest bank in Rwanda. After the merger, Equity Bank will become the second largest bank in Rwanda having a total combined assets market share of 18 percent and a deposit market share of 19 percent.
“Rwanda’s five-year average GDP growth rate at 6.5 percent ranks it among the 10 fastest growing countries in the world… Rwanda’s economic growth is expected to be supported by a continued case of doing business and recovery of global travel,” said Group Managing Director and CEO Equity Group Holding, James Mwangi.
Rwanda’s minister of Finance and Economic Planning Dr Uzziel Ndagijimana was pleased with the merger as he believed that it reflected trust and confidence that has been placed in Rwanda’s economic prospects.
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“ The consolidation of these two institutions will undoubtedly contribute to the growth and stability of Rwanda’s banking sector, enabling us to provide better financial services to our citizens and facilitate economic empowerment,” Dr. Uzziel said.