African investment bank Arise has picked up a significant minority stake in NMB Bank Plc, Tanzanian’s top lender by assets, from one of its principal shareholders.
Arise, which counts FMO and Norfund amongst its shareholders, has bought a 34.9% stake in NMB Bank from Dutch lender Rabobank, which in turn owns 25% of the African investment bank.
The deal involved a transfer of 174.5 million NMB shares. Although Arise did not disclose the deal value, based on the value of stock price, it would have paid around TSZ 408 billion, or around US$180 million, according to estimates by The Capital Quest.
The share transfer process was completed on December 31, 2020.
“Tanzania is a key investment destination in Sub-Saharan Africa for Arise and we are excited about the collaborative partnership with NMB, which is set to further advance financial inclusion in Africa,” Arise chief executive Deepak Malik said.
Malik was previously a Norfund executive where he was responsible for promoting Norwegian investments in Southern Africa. Before joining Norfund in 2003, the Delhi University alumnus was CEO of the Development Bank of Zambia and held senior executive positions in Zambia Consolidated Copper Mines Ltd.
NMB is Tanzania’s largest bank by assets, according to the third quarter 2020 financial results. Its total assets increased to a record TZS 7 trillion in the third quarter last year from TZS 6.1 trillion a year earlier. NMB is also the most profitable bank in Tanzania, having recorded TZS 145 billion in net profit for the quarter ended September 30, 2020, up from TZS 82 billion a year earlier.