Kenya: Ecobank Completes Acquisition

	Email This Page Print This Page Comment on this article Visit The Publisher's Site

Business Daily (Nairobi)

16 June 2008
Posted to the web 17 June 2008

Morris Aron

Ecobank Transnational has completed the acquisition of 75 per cent shareholding in EABS Bank.

The transaction leaves the Pandit family as the single largest shareholders of the bank with a 25 per cent stake and two seats on the board of directors.

The new outfit has been re-named Ecobank Kenya Limited with Mr Peter Kanyago as the new chairman.

Other board members are Simon Mauncho, Michael Monari, Gina Din Kariuki and Surinder Kapila. Mr Kanyago said that the completion of the acquisition paves way for the bank to launch its operations in the market and position itself in the region with Kenya as the hub of its operations.

"With East Africa becoming a full customs union by 2010, Nairobi will serve as the hub of economic activity," said Kanyago.

Ecobank said that it intends to launch a number of products including full-service wholesale, retail, investment and transaction banking services to all sectors of the economy.

The bank also intends to enter into the home loans market by providing mortgage loans to potential home buyers.

Relevant Links East Africa Banking and Insurance Economy, Business and Finance Kenya

EABS shareholders' funds were valued at Sh1.57 billion last year and an acquisition of a 75 per cent stake means the deal could be worth more than Sh1.1 billion.

The bank, which is one of Kenya's mid-tier players, has an asset base of Sh8.9 billion.

EABS Bank was formed in October, 2005, following the merger of East African Building Society and Akiba Bank.

--
Jean-Louis Kayitenkore
Procurement Consultant
Gsm: +250-08470205
Home: +250-55104140
P.O. Box 3867
Kigali-Rwanda
East Africa
Blog: http://www.cepgl.blogspot.com
Skype ID : Kayisa66