NewsNorth AfricaThe African business dealbook

Fri,17Nov2017

Posted on Monday, 24 September 2012 10:48

The African business dealbook

A GEF fund will plough $160m into sustainable forestry. Photo © RAFAEL MARCHANTE / REUTERS The Africa Report takes a peek at high profile African business deals from the first half of 2012 spanning IPOs, investments, funds, mergers and acquisitions, bonds and exits. Below are the highlights.


IPOs



Difficult world markets have slowed initial public offerings (IPOs). In South Africa, financial services firm Transaction Capital raised R712m ($86m) with an oversubscribed private placement when it listed on the Johannesburg Stock Exchange (JSE) in June.

In May, China Non-Ferrous Metals Mining Corporation cancelled plans to raise $313m through an IPO in Hong Kong for its plants in Zambia, citing poor market conditions.

Uganda's only power distributor, Umeme, said it plans an IPO on the Ugandan and Nairobi securities exchanges in 2012.




Mergers & Acquisitions



South African agribusiness company Tiger Brands agreed to buy a 63.4% stake in Nigeria's Dangote Flour Mills.

A shareholder vote on the mega-merger between commodities giant Glencore and miner Xstrata was set for 7 September but later changed to a latter date.

The proposed acquisition by South Korea's KT Corp of 20% of South Africa's telecoms parastatal Telkom fell through.



Investment



In March, RMB Corvest acquired Investec's stake in South Africa's Fintech, an asset financing company focused on technology.

RMB Corvest bought 11.9%, and black economic empowerment (BEE) private equity investor Shalamuka Capital bought 25.1%, with management holding the rest.

The UK government-backed CDC invested $15m as a cornerstone investor into Schulze Global Ethiopia Growth and Transformation Fund I.




Funds



Medu Capital Fund III, a South African BEE private equity investment company with funds under management of R1.5bn ($180m) was launched in June and aims to raise $300m to invest in small and medium enterprises across Africa.

In January, the US-based Global Environment Fund (GEF) raised $160m for the GEF Africa Sustainable Forestry Fund and plans to invest $15m-$30m each in 10 forestry businesses across Africa.

Bob Geldof's 8 Miles fund reached first close at $200m in February as it works towards a $450m target, scaled down from $1bn.

Brazilian investment bank BTG Pactual launched a $1bn Africa-focused private equity fund in May, set to be the largest non-domestic private equity fund and the largest fund exclusively targeting Africa.



Exits



In May, Aureos exited Zambia's Golden Lay to Phatisa's African Agriculture Fund through a leveraged buyout that used mezzanine and equity financing to pay $24m, investing alongside the management in a deal funded by the European Commission.

Aureos Southern Africa Fund managed a trade sale of its stake in South African construction aggregate manufacturer SA Block, to buyer Afrimat.

Cauris Croissance exited from downstream oil and gas operator Pétro Ivoire of Côte d'Ivoire in March, in a deal that is reported to have brought the fund 23% annualised return since 2006.

In July, Actis sold its stake in Banque Commerciale du Rwanda to Kenya's I&M Bank.



Bonds



Oil exploration and production company Afren, listed on the London Stock Exchange, raised a further $300m in February, bringing the total raised through debt markets since 2011 to $800m.

Afren, which is pumping from oilfields off Nigeria, listed the bonds in Luxembourg.

Zambia has said it plans a maiden $700m sovereign bond in 2012 to fund infrastructure projects, but this may depend on market conditions.



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