Equity Group Holdings’ (EGH) ambitious plans to acquire four banks in Rwanda, Zambia, Tanzania and Mozambique owned by Atlas Mara (ATMA) have flopped over economic uncertainties triggered by the Covid-19 Pandemic.
In April last year 2019, Equity Bank entered into an agreement with Atlas Mara, which is listed on the London Stock Exchange (LSE), to acquire 100 per cent shareholding in BancABC Zambia, Mozambique and Tanzania, including 62 per cent of the shares of Banque Populaire du Rwanda Ltd.
In exchange, Equity will surrender an estimated 252.5 million new ordinary shares representing 6.27 per cent of the bank to Atlas Mara valued at Ksh10.7 billion ($107 million).
In January this year, Equity and Atlas Mara failed to sign a binding agreement for undisclosed reasons, arguing that the renewed negotiations could change the terms of the transaction.
The Atlas Mara transaction, which was expected to be completed by December 2019, would have raised Equity’s presence to nine countries, in addition to Kenya, Rwanda, DRC, Uganda, South Sudan and Ethiopia.
