The sports category has moved to a new website.

What you need to know as Kenya’s Equity moves to acquire stakes in four African banks - a share swap deal worth Sh10.7 billion

James Mwangi Equity CEO
  • Kenya's Equity Group Holding and a London-listed financial services firm Atlas Mara Limited are on a share swap deal.
  • The deal will see Kenya's Equity Group acquiring Atlas Mara's stakes in 4 African banks across Rwanda, Zambia, Tanzania and Mozambique.
  • Atlas Mara Limited will in turn own a 6.27% stake in Equity Group, Kenya’s biggest bank by market value.
  • The transaction is worth about 10.7 billion shillings ($105 million).

Kenya's Equity Group Holding on Tuesday said it is in talks to acquire stakes through a share swap in four African banks.

The stakes, owned by a London-listed financial services firm Atlas Mara Limited, will involve 62% of the share capital of Rwanda’s Banque Populaire du and 100% in African Banking Corporation of Zambia, African Banking Corporation in Tanzania and African Banking Corporation Mozambique.

The arrangement will see Atlas Mara Limited having a 6.27% stake in Equity Group, Kenya’s biggest bank by market value.

Getting a stake in Equity Group means Atlas Mara becomes a meaningful shareholder in one of Africa’s most successful and well-run banks.

ADVERTISEMENT

“The transaction will result in increased scale in Rwanda and Tanzania once Atlas Mara and Equity combine their operations there," Atlas Mara said in a statement on Tuesday.

The deal will allow Equity Group to expand its footprint in Africa," Kenya's Equity Group said.

According to the Equity statement, the transaction is worth about 10.7 billion shillings ($105 million).

Here are a few details about the deal

ADVERTISEMENT
  • Equity Group will issue 252,482,300 new shares, representing 6.27% of its expanded share capital in consideration of the shares Atlas Mara owns in the four targeted African banks. 
  • The monetary value of the consideration to be paid is the equivalent of 10.7 billion shillings (approximately $105 million) 
  • The deal is subject to regulatory approvals in the various countries – Kenya and UK
  • Equity added it may also seek to buy additional stakes in Banque Populaire du Rwanda from some or all of the remaining shareholders.
  • After the deal, Atlas Mara Limited will become one of Equity’s shareholders.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

African countries with the highest divorce rate

African countries with the highest divorce rate

10 African cities with the highest crime index at the start of 2024

10 African cities with the highest crime index at the start of 2024

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Details of Ngina Kenyatta's luxurious restaurant

Details of Ngina Kenyatta's luxurious restaurant

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

ADVERTISEMENT