Equity Group Holdings Plc entered into a non-binding term sheet to acquire 66.53% stake in Banque Commerciale du Congo S.A. from certain shareholders for approximately $110 million.

Equity Group Holdings Plc (NASE:EQTY) entered into a non-binding term sheet to acquire an unknown majority stake in Banque Commerciale du Congo S.A. from certain shareholders on September 6, 2019. As of November 18, 2019, Equity Group Holdings Plc (NASE:EQTY) entered into a share purchase agreement to acquire 66.53% stake in Banque Commerciale du Congo S.A. from George Arthur Forrest for approximately $110 million. The consideration will be made in cash.

As part of the consideration, Equity Group Holdings Plc will pay $105 million for 0.625354 million shares inclusive of dividends declared after 1st January 2019 in respect of the financial year ending on 31 December 2019 i.e. a cum-dividend price per share of USD 167.9 per share. Post Competition, Banque Commerciale du Congo will become a subsidiary of Equity Group Holdings Plc. The transaction is subject to conditions that are customary including but not limited to completion of due diligence, the entering of detailed transaction agreements, obtaining and shareholder approval of Equity Group Holdings Plc and the receipt of regulatory approvals from the Capital Markets Authority, the Central Bank Of Kenya, the Central Bank Of Congo and competition regulators.

The aim of the transaction is to eventually amalgamating the business of Banque Commerciale with that of Equity Group's existing banking subsidiary in DRC, the Equity Bank Congo. As on June 30, 2020, shareholders of Equity Group Holdings Plc have approved the transaction. Anjarwalla & Khanna LLP acted as the legal advisor and Stanbic Bank Kenya acted as the financial advisor to Equity Group.