Atlas Mara explores further acquisition options

Banque Populaire du Rwanda head office in Kigali. / File.

Atlas Mara Group, which owns Banque Populaire du Rwanda will continue to explore options in pursuit of adjustment towards improving performance in core markets, streamlining the holding company structure and related costs, and exiting or partnering in certain countries.

Following the end of acquisition talks of a number of Atlas Mara owned banks including Banque Populaire du Rwanda, the firm has said in a statement that they will not cease to evaluate options of practicable transactions in pursuit of the objectives.

 

On June 23, Equity Bank Group announced that talks of the proposed acquisition of Atlas Mara Group’s assets in Rwanda, Tanzania, Mozambique and Zambia had come to an end. This included 62 per cent stake in Banque Populaire du Rwanda Limited (BPR).

 

Going forward, Atlas Mara Group noted that they will continue to prioritise liquidity and capital management, with a focus on providing support and solutions for its clients in the context of the economic effects of the pandemic.

 

The Company is continuing to invest in high-impact digital channels and transactional platforms to drive substantially lower cost of funds, enhancing core banking systems, and focusing on technology-enabled products to retain and grow the customer base.

The Company noted that they will continue to support its local management teams as they scale their engagement with clients to provide tailored liquidity and credit solutions to get through the tough economic times.

The acquisition talks opened in April 2019 and a binding term sheet signed to allow for due diligence.

However, Equity Bank this week announced the termination of 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.

cmwai@newtimesrwanda.com

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