TLG Capital (TLG) acquired 49% stake in Opportunity Bank Uganda Ltd (OBUL) after MyBucks SA, which has been the largest shareholder divested all its shares in the financial institution.
The Luxembourg-based fintech owned OBUL alongside Faulu Trust (7.14), a Kenya microfinance bank and three NGOs namely: Opportunity Transformational (39%), Opportunity International Canada (6.06) ad Food for the Hungry Organisation (1.01).
Julian Thatcher, a general counsel at MHMK Group, a pan-African private equity investment firm, advised TLG Capital during the transaction.
Based in London, UK, TLG owns shares in other companies in Uganda and they include Cipla Quality Chemicals Ltd (pharmaceutical manufacturing), Vero Foods (water-bottling plant) and BAJ Service Stations (fuel retail).
The investment into Opportunity Bank was made via its Credit Opportunities Fund (COF) and marks a continued focus on building and supporting SMEs, according to Zain Latif, a principal at TLG Capital.
"TLG was founded with the belief that social development and commercial returns can and should go hand in hand. The Credit Opportunities Fund was specifically set up to support quality SMEs, and we are excited to welcome OBUL to the TLG family," Isha Doshi, partner and Chief Finance Officer (CFO) at TLG Capital said.
Phillip Karugaba, the Chairman of the OBUL Board of Directors, said that TLG’s more than a decade of experience in Uganda’s business sector makes it the right investor.
MyBucks SA Chairman Craig Lyons said that "the sale of OBUL to TLG, a well-respected investment company fits into” its “strategy of rationalizing” itself “to reduce debt and ensure the company is in a financially healthy position to grow its remaining investments."
Founded in 1995, the bank has 23 branches and 22 ATM points across Uganda.