Kenya’s Equity to buy 4 African banks

KENYAN financial services provider Equity Group has entered into a deal with sub-Saharan African financial services group, Atlas Mara Limited, for the exchange of certain banking assets of the company in four countries for ordinary shares in the bank.
The proposed balance sheet transaction is subject to confirmatory due diligence, definitive transaction documentation, relevant regulatory approvals, and other conditions precedent customary for transactions of this nature.
As part of the deal, Equity Group would acquire for shares in Equity Group Holdings Atlas Mara’s 62 percent 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), and African Banking Corporation Mozambique (BancABC Mozambique). The parties would anticipate mergers of their respective banks within each of Rwanda and Tanzania.
Atlas Mara expects to receive as consideration approximately 252,482,300 ordinary shares of Equity Group representing approximately 6.27 percent of the pro forma share capital of the lender post-closing.
This implies the consideration to be paid is the equivalent of approximately US$105.4 million. The aggregate consideration ultimately payable will be that set out in the definitive agreements negotiated following confirmatory due diligence, and may be subject to adjustment (positive or negative), based on the performance of the banks through consummation of the transactions, and on the net asset value of the banks at the time of closing relative to the net asset value they reported as at December 31, 2018. Further, actual aggregate consideration could include an additional conditional deferred amount. – Business Today