Nairobi Securities Exchange largest bank by market capitalization Equity Group Holdings Plc and Atlas Mara (ATMA) have mutually agreed to discontinue discussions on the proposed acquisition of Atlas Mara’s banking businesses by Equity Group in Rwanda, Tanzania, Zambia and Mozambique.
The latest move is consistent with the Board’s view of the existing uncertainty of risk, according to a statement of the board’s decision.
The two firms had in January reached a compromise to extend the period of negotiations following the expiry of the transaction period before the two parties could sign a detailed transaction agreement. That still bore no positive fruit until the current withdrawal.
Equity Group’s Business Continuity Management
Equity Group now focuses on the following areas to manage its continuity in business with the prevailing and foreseeable circumstances:
1. Conserving cash and liquidity
2. Deploying cash and liquidity to support our customers to survive during this economic crisis and to recover and thrive post the crisis.
3. Accelerating the push to digital channels
4. Growing the various non-funded income franchises while re-evaluating the acquisition of new businesses “where significant capital injection and managerial attention is required”