Equity Group has successfully completed the acquisition of Rwanda's Compagnie Générale de Banque (Cogebanque), marking a significant milestone in its regional expansion strategy.
The acquisition follows the fulfilment of conditions precedent to the acquisition, including regulatory and corporate approvals and was completed on November 30, 2023.
Equity Group Holdings (Plc) now holds 198,250 shares representing 99.1250% of the issued share capital of Cogebanque, officially making the commercial bank its subsidiary.
On June 14, 2023, EGH publicly disclosed its entry into a binding term sheet for the acquisition of 91.93 per cent of the bank's issued shares from the government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Ms. Judith Mugirasoni (the sellers).
The completion of the acquisition was subject to various conditions, including confirmatory due diligence, execution of definitive agreements, regulatory approvals from the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission, and corporate approvals.
Rwanda's Finance and Economic Planning Minister Uzziel Ndagijimana has since said the consolidation of Equity Bank Rwanda Plc and Cogebanque will create a stronger and more resilient banking institution, better equipped to serve the needs of the people of Rwanda.
It will contribute to Rwanda's economic growth and development, the minister noted.
"Additionally, this partnership demonstrates investors' confidence in Rwanda's economic potential and presents new opportunities for the financial sector to thrive,"he said in a statement on Friday.
On July 28, 2023, EGH entered into a share purchase agreement with the sellers by which it agreed to acquire, on completion, 183,854 shares at a price of Rwanda Francs 297,406 per share.
Simultaneously, Equity Group offered to acquire all the remaining shares from the rest of the Cogebanque shareholders, intending to acquire up to 100 per cent of the issued shares of Cogebanque.
Equity Group managing director and CEO, James Mwangi, said: "Through our focus on innovation, cutting-edge technology and superior service, we aim to provide enhanced financial services, improve lives, expand opportunities for wealth creation, and deliver significant value to all our stakeholders in Rwanda."
The eventual merger of Cogebanque and Equity Bank Rwanda will consolidate Equity Group’s position in Rwanda and support delivery of its overarching strategy, the Africa Recovery and Resilience Plan, Mwangi noted.
"The expansion of Equity Group’s business in Rwanda aims to bolster Rwanda’s financial services landscape and fortifies the Group's commitment to catalysing socio-economic development across the African continent,”he added.
He said Equity Group is strategically positioned to deliver an expanded array of competitive, customised financial services.
"This strategic alignment is designed not only to meet the diverse needs of our customers but also to catalyse economic growth, empower local communities, and contribute to the realisation of the Group’s vision as Sub-Saharan Africa's premier financial institution,” said Mwangi.
According to its recently released results as at September 30, Equity Group Holdings reported deposits growth of 20 per cent to Sh1.2 trillion up from Sh1 trillion, with subsidiaries contributing a 49 per cent growth and Equity Bank Rwanda growing by 39 per cent.
Loans grew by 26 per cent to Sh845.9 billion up from Sh673.9 billion, with subsidiaries contributing a 46 per cent growth, and Equity Bank Rwanda growing by 20 per cent.
Total assets grew by 24 per cent to Sh1.7 trillion up from Sh1.4 trillion, again with subsidiaries contributing 47 per cent and Equity Bank Rwanda growing by 40 per cent.
Cogebanque is a public limited company licensed by the National Bank of Rwanda to provide banking services in Rwanda.
At the end of 2022, it was the fifth largest bank in Rwanda as measured by reported book value of total assets and shareholders’ equity and served customers in the corporate, small- and medium-sized enterprise and retail customer segments.
This is through 28 branches, approximately 600 active bank agents and 36 automated teller machines.
As at December 2022, Cogebanque reported net assets of RWF 47.35 billion (Sh5.8 billion) and profit after tax of RWF 9.06 billion (Sh1.11 billion).
