Leading law firm Michelmores’ London office has advised private equity groups Bamboo Finance and Triodos Investment Management on the sale of a significant stake in Tenger Financial Group (TFG) to a consortium led by Japanese bank ORIX Corporation and which included the International Finance Corporation and Mongolyn Alt Corporation.
TFG’s flagship subsidiary is Xac Bank – an established, fully regulated commercial bank and the country’s fourth largest in terms of assets. The transaction has taken over a year to bring to completion as a result of a series of complex constitutional and regulatory hurdles that needed to be overcome, including the approval of the Ministry of Economic Development and the Bank of Mongolia.
Enclude Capital Advisory UK Ltd, a London-based specialist corporate finance advisor with significant experience of advising on M&A and capital raising transactions in the microfinance and impact investment space, acted as the sole financial advisor to the sellers.
The Michelmores team was led by Corporate Partners Richard Cobb (pictured) and Joe Whitfield and included Solicitor Harry Trick.
Joe Whitfield, who was previously General Counsel at CDC Group Plc and who has more than 20 years’ experience advising on private equity, M&A and finance transactions in the emerging markets, comments:
“This complex multi-party multi-jurisdictional deal is further evidence of Michelmores’ growing expertise in advising private equity funds, financial institutions, corporates and government agencies on a wide variety of cross-border transactions in some of the most challenging emerging markets.”
Frank Streppel, Deputy Managing Director at Triodos Investment Management, commented: “We are proud to have been a long term partner with TFG and an active supporter in its transition from a specialized microfinance company to a leading bank. We could not have done it so successfully without the committed and professional help of our advisors at Enclude and Michelmores.”
Ian Callaghan, Managing Director of Enclude’s Capital Advisory business and who previously headed the Microfinance team at Morgan Stanley, added:
“We are delighted to have worked with the Michelmores team to bring this transaction to a successful conclusion. The deal provides TFG with a highly aligned and experienced strategic investor who can help Xac Bank grow in a sustainable manner going forward, whilst maintaining its original vision and mission to enhance financial inclusion for the citizens of Mongolia.”