DGAP-News: ADC successfully exits Resolution Health East Africa Limited ++ Exit in-line with ADC's strategic focus on banking ++ LeapFrog becomes key shareho...

ADC successfully exits Resolution Health East Africa Limited ++ Exit in-line with ADC's strategic focus on banking ++ LeapFrog becomes key shareholder

DGAP-News: ADC African Development Corporation AG / Schlagwort(e):

Fusionen & Übernahmen/Private Equity

ADC successfully exits Resolution Health East Africa Limited ++ Exit

in-line with ADC's strategic focus on banking ++ LeapFrog becomes key

shareholder

20.11.2014 / 08:28

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ADC African Development Corporation AG (ADC) announces the sale of its

38.74% stake in Resolution Health East Africa Limited (RHEAL) to Peter

Nduati, CEO and founder of RHEAL, backed by LeapFrog Investments

(LeapFrog). LeapFrog, an institutional investor in emerging market

financial services companies that pursue social and financial returns, is

in turn acquiring a majority ownership stake from a consortium led by Mr

Nduati. The transaction will become effective upon closing, pending

regulatory approval.

ADC originally purchased its stake in the Kenyan medical insurance company

in December 2010. ADC and RHEAL have since worked together to strengthen

the company's organizational and financial structures, which facilitated

the expansion of RHEAL's presence into new markets and is now present in

both Tanzania and Kenya with an active partnership in Uganda. RHEAL was

founded in 2002 as Kenya's first medical insurer and was licensed as a

General Insurer on the Kenyan market in 2013. Medical insurance remains its

core product with a network of 750 medical service providers across East

Africa, up from 400 when ADC first invested in RHEAL almost four years ago.

The divestiture of RHEAL is in line with ADC's refined strategic focus on

the banking sector to create a pan-African banking group, announced in

2013, and to hold existing non-core investments only until market

conditions are conducive to a successful exit. This transaction follows

ADC's profitable exit from RSwitch announced earlier this year.

The sale of the company to a socially responsible investor affirms ADC's

founding philosophy of building local African companies with local leaders

at the helm and ensuring that the exit is to the benefit of the portfolio

company as well as ADC's investors. The sale represents another profitable

exit for ADC, resulting in an IRR of 16% and a multiple of 1.7x on its

total investment amount.

Karima Ola, Chief Investment Officer of ADC comments, "The exit of RHEAL in

a deal which sees LeapFrog, a leading investor in emerging market insurance

and financial services companies, stepping in as key shareholder, is a

testament to the success achieved by ADC and RHEAL who, together, worked to

build a more stable company in a rapidly expanding industry. Under the

leadership and guidance of CEO and founder, Peter Nduati, RHEAL has

expanded and grown exponentially since ADC's investment in late 2010. The

company will now enter a new stage of augmented growth, benefiting from

LeapFrog's resources, experience in the sector and presence across Africa

to further support and guide RHEAL's strategy goals and growth plans across

Africa. We are proud to have fostered this partnership and to have

profitably exited another ADC investment."

About LeapFrog

LeapFrog Investments is a specialist investor in emerging markets financial

services, seizing the growth opportunity presented by two billion emerging

consumers in Africa and Asia. LeapFrog's portfolio companies currently

provide insurance, savings and pensions products in countries such as

India, Indonesia, Sri Lanka, the Philippines, Ghana, Kenya, Nigeria and

South Africa. A pioneer in Profit with Purpose investment, the LeapFrog

team draws on decades of operational experience to identify and help build

extraordinary companies that deliver top-tier financial and social returns.

Today, LeapFrog's partner companies serve 22.7 million people across 16

countries. For more information please visit www.leapfroginvest.com.

About ADC

ADC African Development Corporation AG (ADC) (ISIN: DE000A1E8NW9;

Bloom-berg: AZC.GR; www.african-development.com) is a German open market

(Entry Standard) listed holding company with investments in sub-Saharan

Africa. ADC has a strong footprint in Southern Africa via BancABC, a

regional commercial banking group operating in Botswana, Mozambique,

Tanzania, Zambia and Zimbabwe as well as in West Africa via Union Bank of

Nigeria. Parallel to its banking operations, ADC has a private equity

portfolio active in growth markets across sub-Saharan Africa. ADC is

indirectly majority-owned by Atlas Mara Co-Nvest Limited which is listed on

the main market of the London Stock Exchange. For more information, visit

Atlas Mara's website at www.atlasmara.com.

Kontakt:

Investor Relations

investor-relations@african-development.com

T +49 69 719 12 80 119

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20.11.2014 Veröffentlichung einer Corporate News/Finanznachricht,

übermittelt durch DGAP - ein Service der EQS Group AG.

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Sprache: Deutsch

Unternehmen: ADC African Development Corporation AG

Grüneburgweg 18

60322 Frankfurt/Main

Deutschland

Telefon: +49 69 719 12 80 119

Fax: +49 69 719 12 80 115

E-Mail: info@african-development.com

Internet: www.african-development.com

ISIN: DE000A1E8NW9

WKN: A1E8NW

Börsen: Freiverkehr in Berlin, Düsseldorf; Frankfurt in Open

Market (Entry Standard)

Ende der Mitteilung DGAP News-Service

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