Atlas Mara and Equity Group have said discussions will continue to reach mutually acceptable terms with respect to the Kenyan lender taking over some of it’s business units.
The two are yet to sign a detailed transaction agreement that would have seen Equity Group taking over Atlas Mara’s business’s units in Rwanda, Tanzania, Zambia and Mozambique.
“Equity Group Holdings hereby confirms that, as of the date of this announcement, the parties have yet to sign detailed transaction agreements and the Binding Term Sheet has expired,” Mr James Mwangi, Equity chief executive, said in the notice.
The preliminary agreement signed in April 2019 has expired and Equity Group in a statement said there is no certainty that this will materialise.
“While there is no assurance that the potential transaction will be concluded on the terms previously announced, the parties continue to be engaged in discussions, with the objective to reach mutually-acceptable terms as soon as practicable in early 2020,” Atlas Mara said in a statement.
In May 2019, Equity Group announced its intention to acquire certain banking assets of Atlas Mara (ATMA): 62.0% shareholding in BPR Rwanda, and 100.0% shareholding in ABC Zambia, ABC Tanzania, and ABC Mozambique.
The transaction, it succeeds, is set to establish new markets in the form of Zambia and Mozambique for Equity Group as well as strengthen existing markets in Rwanda and Tanzania.