A consortium comprising South Africa’s Ethos Private Equity and Old Mutual Investment Group South Africa has announced a strategic investment of USD130m in Nigeria’s Oceanic Bank Internati
A consortium comprising South Africa’s Ethos Private Equity and Old Mutual Investment Group South Africa has announced a strategic investment of USD130m in Nigeria’s Oceanic Bank International, which launched operations in 1990 and was listed on the Nigerian Stock Exchange in 2004.
Oceanic’s current strategic shareholding is owned and managed by Dr Cecilia Ibru, the wife of the founding chairman and patriarch of the Ibru family, Olorogun Michael C. O. Ibru.
‘Since the close of Fund V, Ethos has been actively pursuing investment opportunities in sub-Saharan Africa,’ says Ethos partner Ngalaah Chuphi. ‘This is our first foray into West Africa. This strategic stake represents a unique opportunity to participate in Africa’s fastest-growing banking sector through an investment in one of Nigeria’s tier one banks. Oceanic is well placed to capture the benefits of a rapidly growing economy with tremendous opportunities to grow its businesses.’
Mark Gevers, head of Old Mutual Investment Group of South Africa’s private equity division, adds: ‘The Nigerian banking industry follows a sound regulatory framework and has recently undergone a successful first round of consolidation.
The untapped potential for financial and banking services is particularly attractive. We are excited by this transaction, which enables Old Mutual Investment Group to expand our African footprint in partnership with Ethos and Oceanic.’
According to the Central Bank of Nigeria, a significant proportion of the cash in circulation throughout the country is outside the banking system, making Nigeria currently mostly a cash economy. The central bank is encouraging commercial banks to bring this liquidity into the banking system by rolling out branches to collect deposits.
