Kenya’s leading bank in terms of market capitalization and customer numbers Equity Group has announced that it has entered into an agreement with Pan-Africa focused banking group, Atlas Mara, to acquire the latter’s banking operations in four African countries.
As part of the deal, Equity Group would acquire for shares in Equity Group Holdings Atlas Mara’s 62% shareholding in Banque Populaire du Rwanda (BPR) and, via the Company’s subsidiary ABC Holdings Limited, all of Atlas Mara’s indirect interests in African Banking Corporation Zambia (BancABC Zambia), African Banking Corporation Tanzania (BancABC Tanzania).
Also African Banking Corporation Mozambique (BancABC Mozambique). The parties would anticipate mergers of their respective banks within each of Rwanda and Tanzania.
Equity Bank said it expects to allot about 252.5 million new ordinary shares that represent about 6.27% of Equity’s issued shares equivalent to Sh 10.7 Billion.
Atlas Mara, listed on the London Stock Exchange, was founded by former Barclays boss Bob Diamond and is largely owned by Fairfax Africa Holdings which listed on the Toronto Stock Exchange. Bob Diamond recently stepped down as the chairman of the Atlas and was replaced by Michael Wilkerson, the boss of Fairfax Africa. However, Bob still serves as a non-executive director.