The planned acquisition of 62 per cent stake in Banque Populaire du Rwanda Limited (BPR) by Equity Bank Group has been called off.
The acquisition talks that opened in April 2019 and a binding term sheet signed to allow for due diligence.
However, Equity Bank has terminated talks and negotiations citing that they are working to refine their strategy following the Covid19 pandemic which among other things entails conserving cash and having liquidity. This they said is to enable them to support their clients and businesses weather the pandemic and its effects.
In a letter signed by Mary Wangari, the Group's Executive Director, Equity Bank said that they are also currently placing focus on acceleration of digital channels and growing their income franchises.
They, however, noted that they are still interested in expanding across the continent and will continue to keep an eye out for opportunities to expand footprint.
In January this year, Equity Bank said that binding term sheet that has been signed for the proposed acquisition of Atlas Mara Group's assets in Rwanda, Tanzania, Mozambique and Zambia had expired with the parties not having signed detailed transaction agreements.