Connect with us

Hi, what are you looking for?



Equity quits plans of buying 4 banks from ATMA over uncertainty occasioned by coronavirus

NAIROBI, Kenya, Jun 23 – Equity Group’s intention of acquiring four banks from London-listed investment firm Atlas Mara Limited has been stopped, owing to the uncertainty of risk occasioned by the coronavirus pandemic.

In a statement, the Group’s Chief Executive Officer James Mwangi said the two parties have agreed to discontinue discussions on the proposed transaction or a variant of it for the foreseeable future.

Mwangi says the group is currently focused on conserving cash and liquidity, and deploying it to support its customers to survive during the ongoing economic crisis and to recover and thrive post the crisis.

“The Board has considered the events that have taken place since January when the two parties agreed to extend transaction discussions and particularly the impact of the COVID-19 pandemic to the world and the economies in which EGH operates. After careful consideration, EGH and ATMA have mutually agreed to discontinue discussions on the transaction for the foreseeable future,” he said.

He added that the board’s decision to halt the transaction, is in line with its Business Continuity Management that speaks to risk assessment, approach to prudent risk mitigation and management in the prevailing economic slow-down occasioned by the COVID-19 pandemic in the region and globally.

The deal would have seen Equity Group acquire banking businesses from ATMA in Rwanda, Tanzania, Zambia and Mozambique.

In Rwanda, Equity would have acquired 62 percent of the share capital of Rwanda’s Banque Populaire du Rwanda, and a hundred percent of African Banking Corporation Zambia, African Banking Corporation Tanzania and African Banking Corporation Mozambique.

On its end, Atlas Mara was expected to gain shares equivalent to a 6.72 percent stake in Equity Bank valued at Sh10.9 billion. 

Earlier this month, Equity Group announced that it had withdrawn the Sh9.5 billion dividend pay-out to shareholders owing to disruptions caused by the virus.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...