United Kingdom-headquartered private equity giant TLG Capital (TLG) has announced the acquisition of 49% stake in Opportunity Bank Uganda Ltd (OBUL) from MyBucks South Africa.
Julian Thatcher, general counsel at MHMK Group, a pan-African private equity investment firm, served as an advisor to the bank on the transaction.
This transaction makes TLG the largest shareholder of OBUL. Other shareholders include Opportunity International Group (43%), Faulu Uganda (7%), and Food for the Hungry (1%).
Founded in 1995, OBUL was originally a microfinance institution which offered bespoke financial products to individuals, micro-businesses and small-and-medium sized enterprises (SMEs). It has since developed into a tier commercial bank with 23 branches and 22 ATM points across Uganda.
Phillip Karugaba, the Chairman of the OBUL Board of Directors, said he was excited and pleased with developments. “TLG Capital knows Uganda very well. We look forward to the synergies from working with TLG.”
MyBucks SA (the selling shareholder) Chairman Craig Lyons commented: “The sale of OBUL to TLG, a well-respected investment company fits into our strategy of rationalising MyBucks SA to reduce debt and ensure the company is in a financially healthy position to grow its remaining investments.”
“TLG presented a well-constructed offer that enables MyBucks to exit at an attractive value. The positive engagements between TLG and OBUL management will no doubt enable OBUL to grow from strength to strength. We wish TLG and all stakeholders in OBUL much success in the years to come,” he added.