IFC Moves to Sell 14.1% Stake in Ecobank to Dutch Firm
The International Finance Corporation(IFC), a member of the World BankGroup, is making moves to divest from Ecobank Transnational Incorporated(ETI), the based parent company of the Ecobank Group. IFC holds about 14.1 per cent equity in ETI.
In notification to the Nigerian Stock Exchange (NSE) yesterday, ETI said IFC had gone into discussions with a Dutch investment firm, Arise B.V to purchase the 14.1 per cent equity the pan African bank.
“The IFC, a member of the World BankGroup, and investment funds managed by the IFC Asset Management Company, a wholly-owned subsidiary of IFC, have entered into a Share Purchase Agreement with a leading Dutch investment firm Arise B. V for the sale of their circa 14.1 per cent stake in ETI. Completion of the transaction is expected in the coming months, subject to due diligence, internal and regulatory approvals,” the bank said.
ETI explained that it had worked together with IFC since 1993 to broaden access to finance, enhance trade liquidity, and strengthen Ecobank.
“Since 2009, IFC and the funds managed by the IFC Asset Management Company, through their investments, have been supporting Ecobank’s growth strategy across Africa in building a preeminent banking franchise,” it added.
According to the notification, Arise BV is a leading equity investor in financial institutions in Sub-Saharan Africa(SSA) with a combined asset value in excess of $ 700 million. Its mandate is to capitalize and stimulate growth across all financial services sub-sectors and within SSA. Through partnering with financially sustainable Financial Service providers and helping them to become industry leaders in their respective markets, Arise BV aims to contribute to the economic growth potential of Africa, whilst at the same time achieving long-term investment returns.
Meanwhile, Airtel Africa Ltd, a unit of India’s Bharti Airtel Limited has said it intends to list its shares on the Nigerian Stock Exchange (NSE) at the same time as the London Stock Exchange (NSE).
According to the company, although the listing on the NSE was on, it had set a price range of 80 to 100 pence per share for its planned Initial Public Offering (IPO) on the LSE.