CAL Bank firms up investment footing with Arise partnership deal

The recent acquisition of a 27.7 % stake in CAL Bank by the newly formed investment company, Arise, is set to boost the banking sector in Ghana.

The shareholding in CAL Bank was acquired by Arise from DPI, a leading Africa-focused private equity firm with assets in excess of US$1 billion under management. The settlement was effected on 14 February 2017.

Arise, a collaborative partnership between international companies, Norfund, FMO and Rabobank take and manage minority stakes in Sub-Saharan African Financial Service Providers (FSPs) with the core aim of building strong and stable institutions that serve retail, Small and Medium Enterprises (SMEs), the rural sector, and clients who have not previously had access to financial services.

“The main objective of establishing this company was to strengthen and develop effective, inclusive financial systems in Africa in order to contribute to economic growth and poverty reduction,” said Arise CEO, Deepak Malik.

“We are excited to partner with CAL Bank, the 3rd largest bank in Ghana based on loans advanced and a listed company on the Ghana Stock Exchange. The institution has a strong track record of delivering high growth and solid performance and with the support of Arise is well-positioned to deliver future growth in Ghana, one of Africa’s core emerging economies” added Malik.

Speaking from the bank’s Head Office, Mr. Frank Adu Jnr. CEO of CAL Bank remarked: “This landmark transaction will mark the successful exit of a leading private equity investor, despite a challenging macro environment in Ghana. We look forward to continuing a fruitful partnership with Arise as the new shareholders in CAL Bank”.

Webber Wentzel and Bentsi-Enchill, Letsa & Ankomah acted as legal counsel to Arise on the transaction, while IC Securities acted as Transaction Broker on the transaction. PwC Transaction services and Genesis Consulting Analytics acted as due diligence advisors to Arise.