Prime
Opportunity Bank sells 49 per cent stake to UK equity fund
During the period, Equity also saw an increase in total assets up to Shs1.823 trillion compared to Shs1.320 trillion in 2019. PHOTO/FILE/NMG
What you need to know:
- My Bucks sold its stake in Opportunity Bank and Craig Lyons, the company’s chairman, said the sale was a well-respected investment that fits into the strategy of rationalising MyBucks’ will to reduce debt and ensure financially healthy.
- Opportunity Bank has indicated that the sale is still subject to regulatory approval.
TLG Capital has acquired a 49 per cent stake in Opportunity Bank, which will make the London-based equity fund a majority shareholder.
Opportunity Bank, which currently has 23 branches and 22 automated teller machines across the country, will benefit from a portfolio of the investment holding company that focuses on private equity and debt opportunities in Sub-Saharan Africa.
Opportunity Bank, which had until last year been operating as a micro-deposit taking institution, was granted a commercial banking license in September 2019.
As of September 2019, that bank had an asset portfolio of Shs132b with shareholders’ equity of about Shs28b.
Ms Isha Doshi, the TLG Capital partner and chief finance officer, said in a statement at the weekend Opportunity Bank would be key in pushing its financial inclusion agenda that seeks to empower small and medium enterprises.
TLG, she noted, would also leverage on the Opportunity Bank’s overlaying digital technology to build products that will lay a stronger pathway towards including those currently outside the financial system.
TLG has years of expertise in financial technology (Fintech), which it is expected to deploy as it seek a turnaround that will be premised on technology.
The new partnership makes TLG the largest shareholder, while Opportunity Bank International, which hold 43 per cent, Faulu Uganda with 7 per cent and Food for the Hungry with 1 per cent are the other shareholders.
TLG’s investment was made under its Credit Opportunities Fund, which largely focuses on building and supporting small and medium enterprises, especially in healthcare, financial institutions, and consumer goods.
The equity fund has been an investor in Uganda for over a decade with interest in Cipla Quality Chemicals, Vero Foods and Baj Service Stations.
Mr Phillip Karugaba, the Opportunity Bank chairman, said the bank was looking forward to work with a partner that understands Uganda.
It is not clear how much TLG had provided to support its purchase, but sources close to the matter said the equity fund had presented a well-constructed offer that enabled MyBucks to exit.
