Equity Bank is set to acquire a new Rwandan subsidiary, Cogenbanque Rwanda as the lender seeks to anchor its regional footprints.
This is following a public announcement published in June 2023, that notified the public that it would purchase 91.93 percent of shares in Cogenbanque Rwanda.
At the same time, the bank noted that it was yet to receive one key approval, promising the completion of the acquisition.
“We are looking to complete the acquisition by 30th November 2023,” Equity Group Chief Legal Officer, Gertrude Karugaba had stated on the matter.
Also Read: Equity Records a 6.6% Profit Growth in2023 First Quarter
Further, in the announcement of the purchase, it was noted that it would lead to the joining of Cogenbanque Rwanda with Equity Group’s subsidiary in Rwanda, Equity bank Rwanda.
“Cogebanque Acquisition with a view to eventually amalgamating the business of Cogebanque with that of EGH’s existing banking subsidiary in Rwanda, Equity Bank Rwanda Plc,” the public announcement noted.
Offer to Shareholders
Further, Equity Group Holdings noted that it intended to make an offer to the remaining shareholders to acquire all their shares in Cogebanque at the time of the announcement.
It added that the shares would sell at the same price per share referred to below with the intent that EGH will become the holder of 100% of the issued shares of Cogebanque.
Cogebanque is a public limited company licensed by the National Bank of Rwanda. It provides banking services in Rwanda.
In addition, at the end of 2022, Cogebanque was the fifth largest bank in Rwanda.
This was measured by the reported book value of total assets and shareholders’ equity and served customer through its twenty-eight branches, approximately six hundred active bank agents and thirty-six automated teller machines (ATM).
Equity Bank Subsidiaries rake in Major Profits
Equity Bank has its subsidiaries in Kenya, Uganda, Tanzania, Rwanda, Democratic Republic of Congo (DRC) and South Sudan. It also has a commercial representative office in Ethiopia.
Also Read: How and Why Kenyan Banks Are Consistently Making Profits
In the investor briefing for 2023 Q3 financial results, Equity Group revealed the major role of subsidiaries in the growth of the bank.
For instance, the group’s profit after tax grew by 5% to Ksh36.2 billion up from Kshs34.4 billion.
Of this, subsidiaries contributed 50 percent driven by a growth of 142 percent in DRC, 23 percent in Uganda, 46 percent in Rwanda, 136 percent in Tanzania and 177 percent by Equity Life Assurance Kenya.
