Arise Completes Acquisition of 14.1% Stake in Ecobank

By Dipo Olowookere

The transfer of 14.1 percent stake of IFC and the funds managed by the IFC Asset Management Company (AMC) in Ecobank Transnational Incorporated to the new owners has been completed.

The shares were sold to Arise B.V. with J. P. Morgan Securities Plc acting as Sole Placement Agent and Sole Financial Advisor to IFC and the funds managed by AMC in the transaction.

Chief Executive Officer of Ecobank, Mr Ade  Ayeyemi, in a statement, welcomed “Arise as a shareholder of ETI and believe that there would be a strong synergy in our core objectives especially in ensuring and enshrining financial inclusion and the potential for the development of  our continent.”

He said, “We must also take the opportunity to extend our deep appreciation to IFC for its commitment to and support for Ecobank in the last 10 years.

“We made meaningful progress with the strong collaboration and look forward to continuing to work with IFC in other areas in the future.”

On his part, the Chief Executive Officer of Arise, Mr Deepak Malik, stated that, “In line with our core business mandate of investing in Africa’s local prosperity we are excited to have acquired 14.1 percent shareholding in Ecobank Transnational Incorporated (ETI).

“Arise aims to collaborate with local Financial Service Providers (FSPs) in Sub-Saharan Africa to boost economic growth through strengthening the local banking sector. This transaction with ETI will see Arise collaborate with Ecobank to advance financial inclusion on the continent.”

Senior Advisor at IFC, Mr Paolo Martelli, in his remarks, stated that, “As part of its ordinary asset portfolio rotation, IFC has divested its shareholding in ETI to Arise B.V, a highly reputable Investment House with a strong developmental mandate for Africa.

“IFC invested in Ecobank for more than 10 years and our investment has helped to increase access to credit for entrepreneurs and SMEs in Sub Saharan African Countries (including in IDA countries) in which the bank operates, achieving the development impact we sought when we made the investment.

“IFC maintains its strong commitment to the development of the Sub Saharan African Region and is continuing to invest in other projects in these countries.”