, NAIROBI, Kenya, Sept 13 – South African firm Arise Limited has become the single largest shareholder of Equity Group after a 12 percent stake acquisition.
Based on Equity Group Holdings Sh147 billion market valuation, Aris – which is owned by Norfund, FMO and Rabobank – has paid about Sh17.6 billion for the stake.
Equity Group’s Chief Executive James Mwangi has termed the transaction as, “the largest of its kind in Sub Saharan Africa.”
According to Arise Chief Executive, Deepak Malik, the acquisition is in line with the company’s strategy of investing in sustainable Financial Service Providers in Sub Saharan Africa.
“Arise aims to strengthen and develop effective, inclusive financial systems through collaborative long term partnerships with leading institutions such as the Equity Group”, said Malik.
Mr. Malik says that with the support of Arise, Equity Group Holdings and Equity Bank is well-positioned to deliver future growth on the continent.
“Having pioneered agency banking on the continent the Equity Group has an established track record, characterised by high growth and a solid financial performance and we are pleased to partner with them to advance the local banking sector”, said Malik.
Dr. Mwangi has welcomed the collaboration with Arise.
“We are excited by the expanded opportunities this development presents, to combine our market leading position with Arise, who bring along their substantial resources as well as expertise, which we believe will be invaluable in accelerating the growth of our business,” said Mwangi.
Equity Group Holdings has operations in six East African nations with a client base in excess of 11.7 million.