BANKING & FINANCE • Equity Group Completes Acquisition of 66.53 pct stake in Banque Commerciale Du Congo • Khusoko

Equity Group Holdings PLC has announced the completion of its acquisition of 66.53 percent stake in the Banque Commerciale Du Congo (BCDC) USD 95 million (Ksh10.2 billion) after initially settling for USD105 million (Ksh11.3 billion).

“Equity and the seller also agreed to a reduction in the consideration from $105 million (KSh11.3 billion) to $95 million (KSh10.2 billion), 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,” Equity Group said in a statement.

Equity Group now has two subsidiaries in the Democratic Republic of Congo having earlier acquired ProCredit, a German bank, now Equity Bank Congo.

BCDC is the oldest bank in the country, having been established in 1909.

“We have been fortunate to have had the opportunity to acquire two of the most solid banks in the market. With the second and fourth-largest banks in the country being our subsidiaries, we are confident that amalgamation and merger of the two subsidiaries will produce a combined bank with a balance sheet in excess of USD 2Billion with the capacity and capability to contribute significantly to the development and transformation of the Democratic Republic of Congo,” said Dr. Mwangi, the Group Managing Director and CEO of Equity Group Holdings Plc.

RELATED

BCDC was majority-owned by Belgian entrepreneur George Arthur Forrest and family (66.53 percent) and the government of the DRC (25.53 percent), while the remaining 7.94 percent shares are owned by other minority shareholders.

George Forrest on the transaction, he said, “My decision to sell my shares in BCDC to Equity was because I knew Equity would preserve and develop it to further enhance the lustre it deserves…I sell my shares to Equity in the trust that it will make it the largest bank in Congo and continue to contribute to the development and transformation of the country.”

“I express our gratitude to Mr Forrest and his family, the board and management of BCDC for their openness and trust during the period of the transaction. We are grateful for the trust and confidence bestowed on us,” added Dr Mwangi.