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Leading law firm Michelmores 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.
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.
The deal is the first corporate transaction that Michelmores has completed in Mongolia and demonstrates the firm’s market-leading ability to act on cross-border private equity deals in emerging markets.
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 partners Richard Cobb and Joe Whitfield and included solicitor Harry Trick.
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.”
Richard Cobb comments:
“Many international private equity transactions are governed by English law and we have seen a growing demand for our services in the emerging markets. Combining our deep sector knowledge with our private equity and M&A expertise has enabled us to complete this very complex multi-party multi-jurisdictional transaction.”
Joe Whitfield, a Corporate Partner in the London office who was previously General Counsel at CDC Group Plc (the UK Government’s development finance institution) and who has more than 20 years’ experience advising on private equity, M&A and finance transactions in the emerging markets, comments:
“This deal is further evidence of Michelmores’ 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.”
Ian Callaghan, Managing Director of Enclude’s Capital Advisory business, comments:
“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.”
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