Dr. James Mwangi, the Equity Group Managing Director
Equity Group Holdings PLC (EGH) has completed the acquisition of a controlling equity stake in Commercial Bank of Congo (BCDC) with the aim of merging the business with its existing subsidiary in the Democratic Republic of Congo (DRC).
“EGH is pleased to inform its shareholders and the public that the conditions precedent to the Acquisition including the receipt of corporate and regulatory approvals have been fulfilled and/or waived and the Acquisition was completed on 7 August 2020,” Dr. James Mwangi, the Equity Group Managing Director and Chief Executive Officer said in a statement.
He added: “EGH and the Seller also agreed to a reduction in the Consideration from United States Dollars one hundred and five million (USD 105,000,000) to United States Dollars ninety five million (USD 95,000,000) (UShs348.4bn), both parties having taken into account the events that have taken place since the entry into the Agreement and particularly that the COVID-19 pandemic is having adverse effects on the economies of the World and the economy of the Democratic Republic of Congo.
As a result of the completion of the Acquisition, EGH now owns 66.53% of the issued share capital of BCDC, making BCDC its subsidiary.”
It should be noted that on 18 November 2019, Equity Group Holdings PLC (EGH) published a notice of the entry into a share purchase agreement (the Agreement) with George Arthur Forrest (the Seller) for the acquisition of 66.53% of the shares in the capital of Banque Commerciale du Congo (BCDC) (the Acquisition) from the Seller at a price of United States Dollars one hundred and five million (USD 105,000,000) (the Consideration) with a view to eventually amalgamating the business of BCDC with that of EGH’s existing banking subsidiary in the Democratic Republic of Congo, Equity Bank Congo S.A.
The announcement specified that the Acquisition was subject to conditions that are customary to transactions of this nature including all regulatory approvals from amongst others, the Central Bank of Kenya, Banque Centrale du Congo and the COMESA Competition Commission and the board approvals of BCDC and EGH.
The parties to the Agreement have since the entry into the Agreement, been working on the fulfillment of the conditions provided in the Agreement to enable the completion of the Acquisition.
“We take this opportunity to welcome BCDC directors and employees to the EGH Group and look forward to working together to provide BCDC’s current and new customers with access to competitive, tailored financial services to improve people’s lives and livelihoods whilst also delivering significant value to our stakeholders,” Mwangi said.
BCDC is the second-largest bank in DRC with about 29 branches across the country including key cities Kinshasa, Goma and Lubumbashi. It has an asset base of about $700 million.