Thursday, September 17, 2015
EQUITEL CASH TRANSFERS HIT SH7.4BN IN AUGUST
Group CEO James Mwangi projected the numbers on a power point presentation to brief investors on recent business developments.
One was the sell-off by Helios Capital of more than half of their stake to other investors and the other was Equitel.
Cash transfers showed the highest growth rising from Sh2bn in January to Sh7.4bn in August.
Payments have seen more muted growth rising from Sh41m in Jan to Sh96m in August while withdrawals have over the same period risen from Sh443m to Sh1.01bn.
Loan disbursements have also risen from about Sh750m at the beginning of the year to over Sh4.1bn last month.
The CEO also spoke about Helios Capital selling off much of their stake in Equity Bank. The private equity fund invested Sh11bn in 2007 for a 24.9 per cent stake in then budding grass roots lender and have many many times their original investments.
Recently, they sold half of their stake to Norfund and Norfinance for about Sh23bn. They then sold another stake equivalent to 2.44 per cent of Equity Group to NSSF Uganda for Sh4.5bn.
Others who bought the Helios stake include Genesis, with 5.4%, NSSF Kenya, NSSF Uganda, Renaissance Capital, AfricInvest and so on.
Norfund is now the largest single shareholder of Equity Group with a 12.22 per cent stake.
It is not clear how much money Helios got for its original investment but Mwangi said the exit was the first successful US$500m (Sh50bn) exit in sub-Saharan Africa.