Equity’s largest shareholder Helios sells 12pc stake

What you need to know:

Helios invested more than Sh11 billion in 2007 to acquire a 24.45 per cent stake.
The fund has sold half its stake to two Norwegian funds for an undisclosed amount.
The deal will be completed once it gets regulatory approval from CMA and CBK.

Equity Group’s largest shareholder Helios has sold half its stake to a vehicle owned by two Norwegian funds for an undisclosed amount.

Helios EB Investors, a London-based private equity firm, said that it had entered into an agreement to sell a 12.23 per cent stake in Equity to Norfininvest AS, which is jointly owned by Norfund and NorFinance AS.

The deal will be completed once it gets regulatory approval from the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK).

Helios invested in excess of Sh11 billion in 2007 to become the largest shareholder in Equity Bank with 24.45 per cent of the shares issued.

Their stake is now valued at about Sh46 billion at the Nairobi Securities Exchange.

“We are proud to have played a role in the bank’s growth and success to date,” said Helios managing partner Babatunde Soyoye.

“We look forward to continuing to partner with Equity in the next phase of its development and to support its direct positive impact on the lives of people.”

Equity Group Holdings Managing Director James Mwangi described Norfund and NorFinance as “strong international partners who bring along substantial resources as well as expertise, which will be invaluable in accelerating the growth of our business”.

Norfund is the Norwegian Investment Fund for Developing Countries. It set up NorFinance in 2013, alongside four private Norwegian partners, to invest in banks and financial institutions in Africa.

“This transaction, the largest of its kind in sub-Saharan Africa, brings diversification to Equity’s capital base,” Mr Mwangi said. “We are excited by the opportunities this presents.”

Norfund Managing Director Kjell Roland said the company looks forward to working with all stakeholders to grow the business further.

“This investment is strongly in line with Norfund’s strategy to support banks targeting entry level and mass-market retail banking, and Small and Medium Enterprises, and strengthens our investment portfolio in Africa,” he said.