Societe Generale announces agreements to sell its subsidiaries in Congo, Equatorial Guinea, Mauritania and Chad as well as the opening of a strategic review on its subsidiary in Tunisia
Societe Generale has signed agreements with two pan African banking groups for the sale of its subsidiaries in Congo and Equatorial Guinea to Vista Group, and its subsidiaries in Mauritania and Chad to Coris Group.
These four agreements plan the total divestment of Societe Generale Group's shares in its local African subsidiaries: Société Générale Congo, Société Générale de Banques en Guinée Équatoriale, Société Générale Mauritanie, and Société Générale Tchad, currently 93.5%, 57.2%, 95.5% and 67.8% respectively owned by Societe Generale group.
According to the commitments made, the two pan African banking groups Vista and Coris would take over all activities operated by Societe Generale in Congo, Equatorial Guinea, Mauritania and Chad, as well as all of Societe Generale's clients portfolios and all employees within these entities. Societe Generale group is confident in the ability of Vista Group and Coris Group to pursue the development strategy of these entities, for the benefit of clients, partners, employees and local economies.
The completion of these transactions, which could take place by the end of 2023, is subject to the approval of the entities’ governance bodies, the usual conditions precedent and the validation of the relevant financial and regulatory authorities. These disposals would have a positive impact of approximately 5 bps on the Group's CET1 ratio at their completion date.
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 allowing a satisfactory and sustainable contribution to value creation. Societe Generale offers the unique combination of the expertise and know-how of an international bank with the proximity of a locally based bank. The Group also remains fully committed to supporting its large clients on the African continent, through its global corporate and investment banking franchises.
Societe Generale has also launched a strategic review of its 52,34% stake in Union Internationale de Banques (UIB), the subsidiary of Societe Generale in Tunisia. This approach 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. In this context, a non-exclusive process has been initiated.