n ADC successfully exits Resolution Health East Africa Limited ++ Exit in-line with ADC's strategic focus on banking ++ LeapFrog becomes key shareholder
DGAP-News: ADC African Development Corporation AG / Schlagwort(e):
Fusionen & Übernahmen/Private Equity
ADC successfully exits Resolution Health East Africa Limited ++ Exit
in-line with ADC's strategic focus on banking ++ LeapFrog becomes key
shareholder
20.11.2014 / 08:28
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ADC African Development Corporation AG (ADC) announces the sale of its
38.74% stake in Resolution Health East Africa Limited (RHEAL) to Peter
Nduati, CEO and founder of RHEAL, backed by LeapFrog Investments
(LeapFrog). LeapFrog, an institutional investor in emerging market
financial services companies that pursue social and financial returns, is
in turn acquiring a majority ownership stake from a consortium led by Mr
Nduati. The transaction will become effective upon closing, pending
regulatory approval.
ADC originally purchased its stake in the Kenyan medical insurance company
in December 2010. ADC and RHEAL have since worked together to strengthen
the company's organizational and financial structures, which facilitated
the expansion of RHEAL's presence into new markets and is now present in
both Tanzania and Kenya with an active partnership in Uganda. RHEAL was
founded in 2002 as Kenya's first medical insurer and was licensed as a
General Insurer on the Kenyan market in 2013. Medical insurance remains its
core product with a network of 750 medical service providers across East
Africa, up from 400 when ADC first invested in RHEAL almost four years ago.
The divestiture of RHEAL is in line with ADC's refined strategic focus on
the banking sector to create a pan-African banking group, announced in
2013, and to hold existing non-core investments only until market
conditions are conducive to a successful exit. This transaction follows
ADC's profitable exit from RSwitch announced earlier this year.
The sale of the company to a socially responsible investor affirms ADC's
founding philosophy of building local African companies with local leaders
at the helm and ensuring that the exit is to the benefit of the portfolio
company as well as ADC's investors. The sale represents another profitable
exit for ADC, resulting in an IRR of 16% and a multiple of 1.7x on its
total investment amount.
Karima Ola, Chief Investment Officer of ADC comments, "The exit of RHEAL in
a deal which sees LeapFrog, a leading investor in emerging market insurance
and financial services companies, stepping in as key shareholder, is a
testament to the success achieved by ADC and RHEAL who, together, worked to
build a more stable company in a rapidly expanding industry. Under the
leadership and guidance of CEO and founder, Peter Nduati, RHEAL has
expanded and grown exponentially since ADC's investment in late 2010. The
company will now enter a new stage of augmented growth, benefiting from
LeapFrog's resources, experience in the sector and presence across Africa
to further support and guide RHEAL's strategy goals and growth plans across
Africa. We are proud to have fostered this partnership and to have
profitably exited another ADC investment."
About LeapFrog
LeapFrog Investments is a specialist investor in emerging markets financial
services, seizing the growth opportunity presented by two billion emerging
consumers in Africa and Asia. LeapFrog's portfolio companies currently
provide insurance, savings and pensions products in countries such as
India, Indonesia, Sri Lanka, the Philippines, Ghana, Kenya, Nigeria and
South Africa. A pioneer in Profit with Purpose investment, the LeapFrog
team draws on decades of operational experience to identify and help build
extraordinary companies that deliver top-tier financial and social returns.
Today, LeapFrog's partner companies serve 22.7 million people across 16
countries. For more information please visit www.leapfroginvest.com.
About ADC
ADC African Development Corporation AG (ADC) (ISIN: DE000A1E8NW9;
Bloom-berg: AZC.GR; www.african-development.com) is a German open market
(Entry Standard) listed holding company with investments in sub-Saharan
Africa. ADC has a strong footprint in Southern Africa via BancABC, a
regional commercial banking group operating in Botswana, Mozambique,
Tanzania, Zambia and Zimbabwe as well as in West Africa via Union Bank of
Nigeria. Parallel to its banking operations, ADC has a private equity
portfolio active in growth markets across sub-Saharan Africa. ADC is
indirectly majority-owned by Atlas Mara Co-Nvest Limited which is listed on
the main market of the London Stock Exchange. For more information, visit
Atlas Mara's website at www.atlasmara.com.
Kontakt:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119
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20.11.2014 Veröffentlichung einer Corporate News/Finanznachricht,
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Sprache: Deutsch
Unternehmen: ADC African Development Corporation AG
Grüneburgweg 18
60322 Frankfurt/Main
Deutschland
Telefon: +49 69 719 12 80 119
Fax: +49 69 719 12 80 115
E-Mail: info@african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Börsen: Freiverkehr in Berlin, Düsseldorf; Frankfurt in Open
Market (Entry Standard)
Ende der Mitteilung DGAP News-Service
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