French financial services company Societe Generale (SocGen) has agreed to sell its two African subsidiaries in Burkina Faso and Mozambique, Guinea-based Vista Group.
Vista will acquire SocGen’s currently owned 52.6% stake in Société Générale Burkina Faso and 65% in Banco Société Générale Moçambique.
Under the terms of the agreements, Vista will take over all activities operated by the two subsidiaries, along with the French lender’s client portfolios and all employees in the entities.
The transactions are expected to be completed in 2024, subject to the approval of the internal governance bodies and customary validation of the relevant financial and regulatory authorities.
Upon closing, SocGen will continue its operations in the remaining 10 African countries.
Vista president Simon Tiemtore in a statement said: “Our agreement confirms our expansion strategy, which aims to make Vista Bank a pan-African group present in 25 countries.”
SocGen’s move to exit Mozambique and Burkina Faso follows its already announced sale of four other African businesses in Congo Brazzaville, Equatorial Guinea, Mauritania, and Chad.
According to Reuters’ report, the French lender’s decision to exit from Africa was driven by the need to strengthen the bank’s capital structure.
SocGen is a European Bank with a footprint in more than 60 countries and expertise in various banking sectors, including retail and global banking with a focus on equity derivatives.
The company operates three complementary businesses, French Retail, Private Banking and Insurance; Global Banking and Investor Solutions; and International Retail, Mobility & Leasing Services.
In April last year, SocGen stopped its activities in Russia and agreed to divest its stake in Rosbank and the group’s Russian insurance subsidiaries to Interros Capital.
The French lender said that its sale would impact the group’s CET1 ratio, bringing down about 20 basis points based on the net value of the divested assets as of 31 December 2021.
