The recent acquisition of a 27.7 per cent stake in CAL Bank in Ghana by newly formed investment company, Arise is set to boost the banking sector in the country.
The shareholding in CAL Bank was acquired by Arise from DPI, a leading Africa-focused private equity firm with assets in excess of US$1 billion under management.
Settlement was effected on Tuesday, February 14, 2017, according to a statement issued by Arise in Cape Town, South Africa.
Arise, a collaborative partnership between international companies, Norfund, FMO and Rabobank take and manage minority stakes in Sub-Saharan African Financial Service Providers (FSPs) with the core aim of building strong and stable institutions that serve retail, Small and Medium Enterprises (SMEs), the rural sector, and clients who have not previously had access to financial services.
“The main objective of establishing this company was to strengthen and develop effective, inclusive financial systems in Africa in order to contribute to economic growth and poverty reduction,” said Arise CEO, Deepak Malik.
“We are excited to partner with CAL Bank, the third largest bank in Ghana based on loans advanced and a listed company on the Ghana Stock Exchange. The institution has a strong track record of delivering high growth and solid performance and with the support of Arise is well-positioned to deliver future growth in Ghana, one of Africa’s core emerging economies,” added Mr. Malik.
Speaking from the bank’s head office, Frank Adu Jnr., CEO of CAL Bank remarked: “This landmark transaction will mark the successful exit of a leading private equity investor, despite a challenging macro environment in Ghana. We look forward to continuing a fruitful partnership with Arise as the new shareholders in CAL Bank.”
Webber Wentzel and Bentsi-Enchill, Letsa & Ankomah acted as legal counsel to Arise on the transaction, while IC Securities acted as transaction broker on the transaction. PwC Transaction Services and Genesis Consulting Analytics acted as due diligence advisors to Arise.
Currently the most innovative indigenous Ghanaian bank, CAL Bank formerly Continental Acceptances Limited and CAL Merchant Bank commenced operations in July 1990, providing world class financial solutions to the Ghanaian banking sector. CAL Bank received its Universal Banking License in 2004 and soon commenced providing specialised retail banking services.
Arise, together with Rabobank, Norfund and FMO, currently manages assets in excess of USD 660 million and is operational in over 10 countries. Its aim is to grow its current assets in excess of USD 1 billion.
Arise’s vision is to contribute to the economic growth in Africa and the prosperity of its people by increasing financial inclusion and employment, strengthening rural development and poverty alleviation.
A Dutch cooperative bank with a strong local presence, Rabobank provides a variety of products and services to individuals and companies. Internationally, Rabobank has the ambition to be the leading global F&A bank with a presence in over 40 countries serving over 8.6 million clients.
Norfund, the Norwegian Investment Fund for Developing Countries, contributes to reducing global poverty through contributing to the growth of sustainable commercial enterprises in developing countries. It offers equity, venture capital and other loans to companies in selected countries and business areas where the private sector lacks sufficient capital to grow and develop viable businesses.
Dutch development bank, FMO is a leading impact investor which supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.
The bank believes that a strong private sector leads to economic and social development and has a 45-year proven track-record of empowering people to employ their skills and improve their quality of life.