Enterprise group limited has informed the Ghana stock exchange of an impending transaction to introduce a new strategic partner in place of Sanlam Emerging Market Proprietary Limited of South Africa (Sanlam) in three of subsidiary company, namely Enterprise Life, Enterprise investment and Enterprise Trustees.
Enterprise Group will retain its majority stake in each in each of these subsidiary companies.
The new strategic partner is Black Star Holding Limited (BSHL), a wholly owned subsidiary of LeapFrog Strategic African Investment (LSAI). LSAI is a separate account managed by LeapFrog Investments and in which Prudential financial, inc is a primary investor.
LeapFrog investment have $1 billion in assets under management and a portfolio of companies across Africa and Asia focused on financial service and health. BSHL will acquire Sanlam’s stake in the three subsidiary companies of Enterprise Group for US $ 130 million.
BSHL has also committed funds to support Enterprise Group’s growth agenda over the coming years. The transaction is subject to regulatory approvals and notifications in Ghana and South Africa.
Board Chief of Enterprise Group, Trevor Trefgarne, says “This is an exciting transaction for Enterprise Group. With our new partner, LeapFrog investments, we expect to be able to grasp growth opportunities both in Ghana and across the wider West African Region. Enterprise appreciates the long and productive association with Sanlam in Ghana over the last 12 years”.
From the CEO of enterprise Group, Keli Gadzekpo,: “We at Enterprise Group are delighted to welcome LeapFrog Investments into the Enterprise family. They bring in an incredible network of global insurance contract and experience, and also the capacity to provide growth capital towards the realization of our very ambitious strategic objectives. We are pleased they have chosen to partner us.”
CEO of Sanlam, Junior Ngulube, says “In the 12 years of working with Enterprise Group, we have enjoyed a good partnership and a mutually beneficial relationship in Ghana. Considering our strategic partnerships with both Enterprise Group and Saham Finances, it was mutually agreed that Sanlam should exit from Enterprise Group. However we will look to re-establish and grow our presence in Ghana, starting with Saham Ghana as our partner going forward.”
Doug Lacey, who co-led the transaction with Norm Kelly on behalf of LSAI, observed that “Enterprise Group is a pioneer in delivering vital financial services to emerging consumers in Ghana. Its leading position in financial services, as well as dominance in insurance in insurance with over 28 percent of the market, is a testament to the quality of the financial services it provides.” Norm Kelly of LeapFrog Investments commented that “Leapfrog Investments are extremely pleased to enter into this strategic relationship with Enterprise Group.
A strong platform for growth in West Africa has been built by Enterprise Group’s management team. With our capital and expertise behind the business, we are confident that it will provide millions more with access to essential financial services.”