Successful completion of Kagiso Tiso Holdings' investment in Ghana

12 May 2014

Following on the announcement of a formal signing of a minority equity investment in Fidelity Bank Ghana Limited, Kagiso Tiso Holdings Proprietary Limited (“KTH”) is pleased to announce that the transaction has been successfully concluded after receiving approval from the Bank of Ghana. KTH is investing alongside Amethis Finance and Edmond de Rothschild Europportunities II and in addition to the equity investment, has also subscribed for convertible preference shares, which upon conversion will increase its stake over time.

KTH’s Chief Investment Officer, Jacob Hinson, comments “As our first transaction outside of South Africa, we are delighted to be partnering with Fidelity Bank and its outstanding management team. Our experience throughout this transaction has reinforced our strategy of partnering with companies in various key sectors with strong, effective management teams in order to build on the diversity of our portfolio.

As Fidelity Bank pursues its strategy to become a world class, Ghanaian bank, we intend to explore synergies between the Ghanaian and South African markets and look forward to identifying mutually beneficial opportunities. Now that we have successfully concluded our investment in Fidelity Bank, we are eagerly pursuing new investment opportunities in countries such as Nigeria, Kenya and Ethiopia.”

KTH is South Africa’s pre-eminent black owned and managed investment holding company and boasts a diverse investment portfolio with stakes in market-leading companies across key sectors, including media and ICT, financial services, resources, power and industrials. The group has a net asset value of approximately ZAR 10 billion, a solid track record of investment performance and has demonstrated an ability to create long term shareholder value through its superior capital allocation skills.

Following the recent completion of a ZAR 1.9 billion buy-out of the minorities in its Kagiso Media subsidiary, KTH announced its ambition to diversify its portfolio into fast growing markets, particularly in West and East Africa and has set aside substantial funds to pursue this strategy. The Fidelity transaction represents a significant milestone for KTH and is its first direct investment outside of South Africa.

Fidelity was created in 1998 as a discount house to provide investment products and services to both private and institutional customers. Fidelity Bank was issued with a universal banking license in 2006, with the ambition to create a world class commercial bank. The Bank has grown at three times the industry average and is now seen as one of the strongest indigenous banks in the industry, with a network of 50 branches across Ghana. Fidelity is the 6th largest bank in the country by customer deposits.

Edward Effah, Managing Director of Fidelity Bank Ghana said, “We welcome KTH’s investment in Fidelity Bank and their appointment to our board of directors. We look forward to building a mutually successful relationship that will assist us in achieving our strategy of becoming a world class bank both in Ghana and in Africa.

KTH’s Chief Executive Officer, Vuyisa Nkonyeni concluded by saying, “This is a significant transaction for KTH and we are encouraged by the strength of our partnership with Fidelity Bank. As we look to developing our pan-African strategy further, the importance of identifying and exploring opportunities across key sectors remains a core focus area.