Africa-focused private equity firm DPI’s ADP I Fund has sold its 27.7 per cent shareholding in CAL Bank in Ghana to Arise, a financial services investment company whose major shareholders are Norfund, Rabobank and FMO.
The deal is due to complete on 14 February 2017.
CAL Bank is one of Ghana’s leading independent banks and is active in corporate, retail and investment banking. CAL Bank is listed on the Ghana Stock Exchange and is the third largest bank in Ghana based on loans advanced. With the support of Arise, CAL Bank is well-positioned to deliver future growth in Ghana, one of Africa’s core emerging economies.
CAL Bank consistently grew profits since DPI’s investment in 2012 reporting profit after tax growth of 77 per cent per annum from 2011 to 2015. DPI provided input into CAL Bank’s strategic processes as well as support and strategic guidance to the board.
Arise BV was formed in 2016 as a partnership between Norfund, FMO and Rabobank to reaffirm their long-term commitment to Africa’s future development, growth potential and the local financial sector. The company started with a presence in over 20 countries, and USD660 million in assets.
Eduardo Gutierrez, partner, DPI, says: “DPI is proud to have partnered with CAL Bank in expanding a leading banking franchise in Ghana over the past four years. Driven by an exceptionally strong and motivated management team, CAL Bank is well positioned to harness the significant growth opportunity in financial services in one of Africa’s largest growth markets. We wish CAL Bank, the management team and Arise continued success in delivering on this potential.”
Runa Alam, chief executive officer, DPI, says: “Our investment in CAL Bank fits our core investment objective to invest in best-in-class African companies that benefit from the emerging middle class. We are delighted to have achieved strong equity returns for our investors even in a downturn. This is due to the strong performance of the bank. We thank the CAL Bank management team for the partnership over the last several years and for contributing to the growth and success of CAL Bank.”
Frank Adu Jr, managing director at CAL Bank, says: “We are delighted to have partnered with DPI, who have been supportive shareholders and have added significant value to our business over their investment period. We look forward to continuing a fruitful partnership with ARISE as the new shareholders in CAL Bank.”
IC Securities acted as financial adviser and Norton Rose Fulbright and N. Dowuona & Co acted as legal counsel to the seller on the transaction.
