Arise, the $660 million financial services investment platform launched earlier this year, is taking a 12% stake in publicly-listed Equity Group Holdings, the parent company of Equity Bank. The deal makes Arise the company’s largest single shareholder. The financial terms of the transaction were not disclosed.
Equity Group Holdings, which has a market cap of KShs 147.17 billion, serves almost 12 million clients across six countries in East Africa. The group boasts the largest volume of deposit customers on the continent.
Commenting on the transaction, James Mwangi, Equity Group Holdings CEO said “We are excited by the expanded opportunities this development presents, to combine our market leading position with Arise, who bring along their substantial resources as well as expertise, which we believe will be invaluable in accelerating the growth of our business.”
Arise was created by FMO, Norfund and Rabobank who agreed to combine their stakes in financial services companies in more than 20 countries on the continent and use the new platform to take minority stakes in additional companies. With assets valued at $660 million in January, the goal is to expand the new company’s asset base to more than $1 billion in size.