Equity Group has mutually agreed with Atlas Mara (ATMA) to discontinue discussions on the proposed transaction where they had expressed the intention to acquire banking businesses from ATMA in Rwanda, Tanzania, Zambia and Mozambique.
In January 2020, the Board announced the extension of discussions with ATMA following the expiry of the transaction period before the two parties could sign a detailed transaction agreement. During the extended period, the two parties would continue further discussions to try and reach mutually acceptable commercial terms with respect to the proposed transaction or a variant of it.
Dr. James Mwangi, Managing Director and CEO of EGH Plc said, “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.” The Board’s decision is in line with its Business Continuity Management that speaks to risk assessment, approach to prudent risk mitigation and management in the prevailing economic slowdown occasioned by the COVID-19 pandemic in the region and globally.
According to the bank, they are now focused on accelerating the push to digital channels and growing the various non-funded income franchises while re-evaluating the acquisition of new businesses where significant capital injection and managerial attention is required.