Ecobank eyes acquisition to fund oil deals

Takeover. Instead of going into a start up, Ecobank is looking at an existing investment bank for a takeover.

Ecobank Kenya is targeting the acquisition of a local investment bank to help it tap into the increased energy and mining deals in the region.

Ecobank chief executive officer, Anthony Okpanachi told the Business Daily that the lender plans to acquire the investment bank to launch its financing business in the region.

“Instead of getting the licence as a start-up we will use the approach of acquiring an already operational bank,” he said.
The bank is working to convert its structured finance department, which currently has two staff, into an investment bank that will hire a staff capacity of about of 15 people.

Mr Okpanachi, however, did not disclose the bank and other details such as the capital outlay saying it may interfere with the ongoing negotiations.
Ecobank is targeting deals in the oil and gas industry and other energy deals in Kenya and the larger eastern Africa region.

Recent oil and gas discoveries in the region have attracted investment in the energy sector, especially exploration and infrastructure projects with significant capital inflows.
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