Equity Group has acquired  a controlling stake in a Rwandese Bank, Kes 6.67 billion, to expand in the East African market.

In a notice in the local dailies, Equity Group Managing Director and Chief Executive Officer(CEO) said that the lender had agreed with the Rwandan Government, Rwanda Social Security Board, Sanlam Vie Plc, and Judith Mugirasoni (collectively, the seller) to purchase 91.93 per cent of the Compagnie Générale De Banque Plc (Cogebanque).

“By acquiring Cogebanque, EGH will be able to expand its footprint and consolidate its position in Rwanda,” he said.

“Further, EGH through the combined businesses of Equity Bank Rwanda Plc and Cogebanque, aims to provide even better access to competitive, tailored financial services to improve lives and livelihoods of the people of Rwanda, expand opportunities for wealth creation whilst also delivering significant value to its stakeholders.”

Attempts by Equity to buy 62 per cent of the share capital of the Rwandese Banque Populaire du Rwanda failed in 2020.

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The acquisition will boost Equity’s market share in the region as it faces competition from other financial institutions such as the Kenya Commercial Bank (KCB).

“Until further announcements regarding the Cogebanque Acquisition are made, the shareholders of EGH and other investors are advised to exercise caution when dealing in EGH ordinary shares on the Nairobi Securities Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange,” Mwangi added.

In the financial year ending December 31, 2022, Equity Group posted a Kes 46.1 billion net profit, boosted by higher earnings on the Kenyan unit.