Kenya's Equity Group Holdings PLC entered into a nonbinding term sheet with certain shareholders of Banqué Commerciale du Congo SA to potentially acquire a controlling stake in the Democratic Republic of the Congo-based lender.
Equity Group said the transaction will allow it to expand its presence in Africa, adding that it intends to merge Banqué Commerciale du Congo's business with its banking subsidiary in Congo, Equity Bank Congo.
The proposed deal is subject to customary conditions, including due diligence and approvals from shareholders and from the Capital Markets Authority, the central banks of Kenya and Congo and competition authorities.
Equity Group advised its shareholders and investors to exercise caution when dealing in the bank's shares on the Nairobi Securities Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange until further announcements regarding the deal are made.
Moody's recently assigned Banqué Commerciale du Congo, which is licensed to provide banking services in Congo, long- and short-term deposit ratings of Caa2/Not Prime among several other ratings. The outlook on the long-term rating is stable.
