One of Africa’s leading banks Ecobank Transnational Incorporated (“ETI”) has announced that IFC and the funds managed by the IFC Asset Management Company (“AMC”) have completed the sale of their 14.1 per cent stake in ETI to Arise B.V. (“Arise”). Accordingly, Arise has become a shareholder of reference in ETI with a 14.1 percent stake. J. P. Morgan Securities PLC acted as Sole Placement Agent and Sole Financial Advisor to IFC and the funds managed by AMC in this transaction. Following the completion of the transaction, Paolo Martelli, Senior Advisor at IFC said: “As part of its ordinary asset portfolio rotation, IFC has divested its shareholding in ETI to Arise B.V, a highly reputable Investment House with a strong developmental mandate for Africa. IFC invested in Ecobank for more than ten years and our investment has helped to increase access to credit for entrepreneurs and SMEs in Sub Saharan African Countries (including in IDA countries) in which the bank operates, achieving the development impact we sought when we made the investment. IFC maintains its strong commitment to the development of the Sub Saharan African Region and is continuing to invest in other projects in these countries.” However, insiders at Arise say the acquisition of more shares in Ecobank could pave way for them to reduce on their shares in Dfcu or quit the bank. However, this comes at the time when Dfcu is embroiled in a property struggle with East African richest businessman over branches that Crane Bank used to rent from Meera Investment. Dfcu aquired Crane Bank from Bank of Uganda but the move has since been contested by shareholders led by Sudhir Ruparelia. Deepak Malik, Chief Executive Officer of Arise said: “In line with our core business mandate of investing in Africa’s local prosperity we are excited to have acquired c.14.1 per cent shareholding in Ecobank Transnational Incorporated (ETI). Arise aims to collaborate with local Financial Service Providers (FSPs) in Sub – Saharan Africa to boost economic growth through strengthening the local banking sector. This transaction with ETI will see Arise collaborate with Ecobank to advance financial inclusion on the continent”. Ade Ayeyemi, Chief Executive Officer of ETI said: “We welcome Arise as a shareholder of ETI and believe that there would be a strong synergy in our core objectives especially in ensuring and enshrining financial inclusion and the potential for the development of our continent. We […]
