“Our investment in HFC was well timed as we capitalized on the rapid growth in the banking sector in Ghana. With the support of the other stakeholders, the Bank executed a successful strategy which has attracted a lot of strategic interest. This created the opportunity for our successful exit,” Abraaj Group partner Jacob Kholi said in a press statement.
“We believe that the new partnership being forged with RepBank will propel HFC to the next level of its growth.”
The statement gave no details of the value of the HFC Bank stake sale.
The Abraaj group had acquired a stake in HFC Bank in 2010. During the investment, HFC Bank became one of the biggest banks in Africa. Loans and advances to also increased over 1000 per cent from 160 million cedi to 330 million cedi.
Republic Bank Limited (RepBank) is one of the largest banks in the Eastern Caribbean region, with offshore banking facilities in the Cayman Islands and more than 10 subsidiaries.
Earlier this year, the Abraaj Group entered into a conditional agreement to acquire Ghana’s Stock Exchange-listed dairy firm Fan Milk Ghana at a 57 per cent stake, which was expected to improve Ghana’s investment profile.
On July 29 the Abraaj Group also announced a divestment of 50 per cent shareholding in Turkish health insurance company Acıbadem Sağlık ve Hayat Sigorta A.Ş to Khazanah Nasional Berhad, the investment holding arm of the Malaysian government.
Founded in 2002, The Abraaj Group has over 30 offices all over the world with over 300 employees. The company has 7.5 billion dollars in assets under management.