Societe Generale Inks Agreement to Sell African Subsidiaries

French bank Societe Generale on Thursday said it had signed agreements with two pan African banking groups, Vista and Coris, to take over its activities in Congo Brazzaville, Equatorial Guinea, Mauritania and Chad.

SocGen said it had also launched a strategic review of its 52.34% stake in Union Internationale de Banques (UIB), the subsidiary of Societe Generale in Tunisia.

"Africa is a geography with growth potential, where the Group has built a historic presence and intends to focus its resources on markets where it can position itself among the leading banks, in synergy with the Group's other businesses and with a critical size," SocGen said.

SocGen added that it remains fully committed to supporting its large clients on the African continent, through its global corporate and investment banking franchises.

SocGen said its subsidiaries in Congo Brazzaville and Equatorial Guinea would be sold to Vista Group, and its subsidiaries in Mauritania and Chad to Coris Group.

The agreement included all client portfolios and employees within these entities, it added.

The agreements plan the total divestment of SocGen's shares in Societe Generale Congo, Societe Generale de Banques en Guinee Equatoriale, Societe Generale Mauritanie, and Societe Generale Tchad, currently 93.5%, 57.2%, 95.5% and 67.8% respectively owned by SocGen.

About its Tunisian subsidiary, the bank said it aims to explore possible options that would enable UIB to better realize its development potential in the coming years for the benefit of its shareholders, clients and employees.

The completion of these transactions, which could take place by end 2023, is subject to the approval of the entities' governance bodies and the validation of the relevant financial and regulatory authorities.

(Source: Reuters)