ACQUISITION TRAIL: Prudential Financial to acquire minority stake in Alexander Forbes

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Prudential Financial, together with LeapFrog Investments, will acquire a 14.8% minority stake in the Alexander Forbes Group, further cementing the company’s long-term plan to access the financial services markets in Africa.

high-quality financial services companies across the African continent, including the Enterprise Group in Ghana and Icea Lion in Kenya.Pavan Dhamija, Prudential Financial’s regional president. Prudential Financial intends to further increase its strategic minority ownership interest in Alexander Forbes through a partial offer to all shareholders such that its resulting shareholding will increase to 33%. The transaction is subject to regulatory approvals and other customary closing conditions.

African Rainbow Capital , which has a 39.9% shareholding in Alexander Forbes, has the right to nominate one non-executive director to the board for so long as it owns at least 7% of Alexander Forbes. To better align the relationship agreements between the company’s two strategic shareholders, Alexander Forbes will also grant ARC the right to nominate one additional non-executive director for so long as it holds 25% or more of the issued shares.

Gary Herbert, chief operating officer and partner at LeapFrog Investments, says the investment reinforces LeapFrog’s commitment to deepening access to financial tools to generate prosperity for consumers in emerging markets. Finally, Dawie de Villiers, chief executive of Alexander Forbes, says the transaction is an exciting development that will enable the company to leverage the global insights available through Prudential Financial to enhance its value proposition.

 

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