![[Ghana] Williamsville set to acquire True Life Capital Microfinance](Images/2018/06/true life microfinance.jpg)
[Ghana] Williamsville set to acquire True Life Capital Microfinance
Diversified holding corporation Williamsville Sears Management Inc has signed a Letter of Intent for the acquisition of True Life Capital Microfinance Limited, a Ghana-based microfinance firm, in an all-stock transaction subject to the approval by both companies of definitive documents and approval by the Bank of Ghana (“BOG”) as regulator, as well as the achievement of certain other milestones including increasing its capital raise and converting to a savings and loan institution.
The acquisition anticipated by the LOI is the result of a process initiated following WSML's strategic review announced two months ago.
If consummated, WSML will, through a local wholly owned subsidiary, own 100% of the outstanding shares of True Life Capital Microfinance Limited. The due diligence process has already started, and if it is proven to be satisfactory, the transaction is expected to close in August.
Kent Clark, Chairman & CEO of Williamsville Sears Management Inc., stated, “Our aim in acquiring True Life Capital Microfinance and converting into a big savings and loans bank is in line with that component of our corporate vision for socially conscious, foreign investment. By picking a company focused on bottom-up impact on society, we seek to address eight of the seventeen goals of the 2030 Sustainable Development Goals aimed at achieving maximum benefit to the communities in which we invest. The Team here at Williamsville Sears Management Inc are looking very forward to bringing True Life Capital Microfinance Limited on-board as soon as possible. This entity continues to broaden our diverse portfolio as WSML continues to build towards a stronger future for our WSML Shareholders and the Communities which we serve."
According to the UNCDF in a McKinsey Global Institute report, $3.7 trillion can be added to the GDP of emerging economies within a decade through fintech and as an example, Kenya’s M-PESA has lifted the bottom 2% of the Kenyan population out of poverty, improving the economic lives of poor women and of members of female-headed households.
True Life Capital Microfinance as a savings and loan institution will be positioned to address the financial inclusion of millions of African citizens by creating stable financial systems, the opportunity for savings, credit, insurance, payments and remittance aimed at the excluded, the underbanked, micro, small, and medium enterprises, at a reasonable cost, and on sustainable basis.
Women will be targeted to improve positive economic outcomes, increase productivity, profits and greater investment in their businesses as well as prevent the sale of assets as a result of health emergencies, the loss of a spouse and stabilize their incomes in times of economic shock.
Cornelius Ganyaglo, CEO of True Life Capital Microfinance Limited stated, “I have worked hard over the years at great personal sacrifice to assist my community in addressing their needs and the time has come for the next person in the relay to take the baton and proceed to the finish line as society will be the better for it. I am grateful to Nelike Capital for its partnership with Palewater Advisory for having provided this opportunity for the expansion of the business.”
