Dangote Group acquires stake in Afreximbank

09 Jun 2016
Financial Nigeria

Summary

Afreximbank said Dangote Group completed the process of acquiring equity stake in the Bank on May 30, 2016, with a “substantial investment.”

Aliko Dangote, President and Chief Executive, Dangote Group

Dangote Group, a leading Pan-African conglomerate, has acquired shares in African Export-Import Bank, the Cairo-based multilateral financial institution.

According to a statement released on Wednesday, Afreximbank said Dangote Group completed the process of acquiring equity stake in the Bank on May 30, 2016, with a “substantial investment.”

“I consider Afreximbank a good vehicle for fostering regional integration in Africa which aligns with our vision and mission for growth and development across the continent,” Aliko Dangote, Africa’s richest man, said.

In his remarks, Dr. Benedict Oramah, President of Afreximbank, said Dangote Group’s investment represented a strong vote of confidence in the Bank and its strategic investments across Africa.

“The massive investments the Group is making across Africa makes it a partner of choice in the delivery of our Intra African Trade Strategy,” Oramah said. “Working with the Dangote Group, we will build supply chain financing across Africa that could reach $1 billion in the short term, promoting intra-regional trade and growth of SMEs and creating much needed jobs.”

Afreximbank has four classes of shareholders – classes A, B, C and D – which are made up of African governments, central banks, regional and sub-regional institutions, African private investors, African and non-African financial institutions, export credit agencies and non-African private investors.

Class A shareholders are African states, African central banks and African public institutions, including the African Development Bank. Class B shareholders consist of African financial institutions and African private investors. While Class C shares are held by non-African investors, mostly international banks and export credit agencies, including Standard Chartered Bank, HSBC, Citibank, China Exim Bank and Exim India.

Class D shares, a tier approved in December 2012, are fully paid par value shares that can be held by any investor. Afreximbank did not specify the class of shares acquired by the Dangote Group.


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