[2008-04-18]  Equity gets a foot in Uganda after buying bank for Sh1.6bn
Equity Bank has wholly acquired a bank in in Uganda in a Sh1.66 billion buy out that only awaits regulatory approval.

The bank now plans to fund its acquisition of Uganda Microfinance Limited, through an allotment of 11.3 million new ordinary shares to its current shareholders, at a price of Sh147 for every new ordinary share.

Once taken, the new shares will add up to three per cent of the bank’s expanded share capital.

“Since the investment by Helios EB, we have been actively engaged in strategically consolidating our dominant banking position in the country and seeking prudent regional entry points,” said the bank’s chief executive, Dr James Mwangi.

However, regulatory approval from both countries will be required for the deal to pass.

The regulators include the Bank of Uganda (under the country’s Microfinance Deposit-taking Institutions Act, 2003), the Central Bank of Kenya (under the Banking Act) and the Capital Markets Authority under the (Capital Markets Act). will scrutinize the acquisition.

Approval of the bank’s 7,000 shareholders must also be sought.




Source: nationmedia