On January 15, 2016 Ard Financial Group (Ard Holdings) Closed Joint Stock Company closed a deal to sell all its remaining shares in the parent company of XacBank, TenGer Financial Group (TFG).
EIT or Employee Investment Trust originated as an employee stock ownership program of XacBank’s predecessor in 2000, when MNT600 million was contributed by the United Nations Development Program Mongolia resident mission and Mercy Corps, a US non-governmental organization, to help align XacBank’s employees’ and shareholders’ interests. Eventually, XacBank employees collectively swapped their shares in the Bank for the shares in the holding company, XAC-GE LLC (later renamed TFG), and consolidated their investments under the umbrella of EIT. EIT set out to maximize the value of employees’ shares through pro-active participation in the governance and management in TFG. This laid a foundation of the first Mongolian institutional investor with over 730 shareholders.
Ard Holdings started with a minority investment in TenGer Financial Group in 2005, and by 2013 managed to become the single largest minority shareholder in alliance with its strategic partners. In 2014 Ard Holdings set on a new mission to become a financial services holding company, resulting in the strategic decision to divest from TFG. On January 15, 2016 Ard Holdings closed the transaction to sell the remaining 4.26 percent of TFG to Orix Corporation from Japan, European Bank of Reconstruction and Development and Mongolia Opportunity Fund.
“We believe that Ard Holdings played a historical role in the development of XacBank and TenGer Financial Group. However, every investor has a choice to pick the right time to sell its shares and exit.” said Mr. Ganhuyag Ch. Hutagt, the CEO of Ard Holdings and founder of XacBank and TFG. “TenGer succeeded in becoming an integrated financial services group practicing good corporate governance with sound management systems, and I think our involvement is no longer necessary. Building upon 18 years of experience of setting-up and managing XacBank and TFG, my team created Ard Financial Group, a financial holding company comprised of various individual investors. This event just shows our new commitment to focus on our Investor Nation initiative, which shall give all Mongolians an equal opportunity to invest and profit from the banking sector.”
Ard Financial Group or Ard Holdings is a financial holding company that invests in leading financial service providers to help them capture market share, improve competitiveness and increase their value in order to maximize the return to our shareholders. The investment portfolio of Ard Holdings includes the Nation’s leading companies such as Ard Insurance, Ard Credit, Ard Securities, Ard Assets, Ard Management and EIT (Equity Investment Trust). The Company is also invested in the Institute of Engineering and Technology, Nomyn Hishig, TenGer Systems and Wild Digital Agency through its investment fund. Ard Holdings actively participates in the management of its portfolio companies and creates synergies across the Group. Investor Nation is a trademark of Ard Holdings.