ADC African Development Corporation AG
ADC successfully exits Resolution Health East Africa Limited ++ Exit in-line with ADC’s strategic focus on banking ++ LeapFrog becomes key shareholder

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.