The
weekly roundup of Africa's Private Capital news
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Here's this week's wrap of the most interesting Africa-related private equity, infrastructure and venture capital deal stories, market opinion articles and information pieces for our review. Thank you for being a reader and we hope you continue to find the newsletter useful.
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This week's issue supported by...
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The week in brief...
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Some notable private equity deals took place in Africa last week.
TPG dipped its toe in the water to make its first investment in Africa. As you may remember, in June his year the U.S. private equity firm announced they were planning
to invest up to $1 billion in a tie-up with Satya Capital, Mo Ibrahim's Africa-focused investment firm. Sources tell the Wall Street Journal that they are investing $25 nillion in Ecoles Yassamine, a chain of private schools in Morocco, which has plans to expand both domestically and regionally with TPG-Satya's help.
Last Monday Actis announced that it had
completed the sale and transfer of Globaleq Africa to a new company formed by Norfund and the UK's development finance institution, CDC. Norfund is paying $227 million in cash for a 30% stake in the independent power producer, while CDC, which already held a majority indirect investment in Globaleq Africa via Actis's Infrastructure 2 Fund is transferring its stake to the newly formed company.
In another of the bigger transactions of the week, Mitsui & Co., the Tokyo-headquartered trading and investment company, has led a consortium of investors in backing mobile network operator Afrimax Group with $120 million in growth funding. Additional members of the consortium include Torreal, the Spanish investment company as well as the mobile network operator's existing stakeholders Four G Capital, the IFC and the IFC's African, Latin American and Caribbean Fund.
South African investment company, Kagiso Tiso Holdings is taking a 37% stake in Ghanaian broadcaster Global Media Alliance Broadcasting (GMABC) through its subsidiary, Kagiso Media. The acquisition is part of KTH's strategy to expand its pan-African footprint both directly and indirectly through its investee companies. GMABC operates four radio stations (Happy FM, YFM Kumasi, YFM Accra and TFM Tokoradi) and one free-to-air terrestrial television channel, (e.tv Ghana), in one of Africa's fastest growing economies.
Staying in South Africa, middle-market buyout firm Marlow Capital announced that it completed a deal to acquire Just Batteries, a specialist designer and developer of industrial batteries, at the beginning of September. The company is a well-established provider of industrial power and energy, and has been in operation for more than 65 years. As with its other investments, Marlow plans to partner with the management team to grow the company to become a regional market leader in its sector.
An interesting piece appeared in Kenya's
Business Daily last week with a report that
Equity Bank's CEO, James Mwangi, told an investor briefing that as
Helios Investment Partners steadily exited its 25% stake in the Kenyan Bank over the first six months of the year,
the majority of the stake's acquirers paid a 10% premium on the market value of the shares. That's led to analysts estimating that Helios realized approximately $500 million on the sale, which represented a robust 436% return on their original 2007 investment.
You can review these and other stories by
scrolling
down and reviewing the headlines, abstracts and links.
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Private Equity
Actis, the emerging markets private equity fund, has completed the sale and transfer of Globaleq Africa to a new company formed by Norfund and UK development finance institution, CDC. Norfund paid $227 million in cash for a 30% stake, while CDC, which already held a majority indirect investment in Globaleq Africa via Actis's Infrastructure 2 Fund transferred its stake to the newly formed company.
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Private Equity
Mitsui & Co., the Tokyo-headquartered trading and investment company, has led a consortium of investors in backing Afrimax Group with $120 million in growth funding. Additional members of the consortium include Torreal, the Spanish investment company as well as the mobile network operator's existing stakeholders Four G Capital, the IFC and the IFC's African, Latin American and Caribbean Fund. Additional terms of the deal were not disclosed.
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Private Equity
TPG joins the ranks of U.S. private equity firms making investments in Africa by spending $25 million in partnership with Mohammed Ibrahim's Satya Capital for a minority stake in Ecoles Yassamine, a chain of private schools in Morocco. Six thousand students attend Ecoles Yassamine's schools in Morocco, a number that is expected to grow as the company expands by acquiring more schools in the country and other countries in the region.
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Private Equity
Marlow Capital, the private equity firm based in South Africa, announced that it completed a deal to acquire Just Batteries, a specialist designer and developer of industrial batteries, at the beginning of September. The financial terms of the transaction were not reported. As with its other investments, Marlow will partner with the management team to grow the company to become a regional market leader in its sector.
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Private Equity
In the second deal for its private equity fund raised earlier this year, Ascent Capital has taken an undisclosed stake in Chims Africa, the Kampala-based mobile money agency which operates a chain of 130 MTN agencies in Uganda. According to the report in Business Daily, the capital will be used to open an additional 700 mobile cash kiosks, especially in rural areas.
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Private Equity
Kagiso Tiso Holdings, the South African investment company, has taken a 37% stake in Global Media Alliance Broadcasting, a media company that operates radio stations and a television channel in Ghana. Financial terms of the deal, which was transacted by KTH subsidiary Kagiso Media, were not disclosed.
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Private Equity
Phatisa, the Africa-focused private equity fund manager has entered into an agreement with Tamarind Properties to back the development of 140 single-family homes in Nakuru, Kenya, through its Pan African Housing Fund. Financial terms of the deal were not disclosed.
The deal represents the $41.95 million Fund's fourth and largest investment in Kenya, part of its strategy to provide equity finance to experienced and reputable property developers to enable the increase in the supply of affordable middle class housing in East Africa, Zambia and Mozambique.
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Private Equity
West Africa-focused fund manager Injaro Investments have made their second investment in Mali's agricultural sector by backing Comptoir 2000, an indigineous seed producer, in an undisclosed deal. The investment was made through Injaro Agricultural Capital Holdings, or IAHCL, their impact investment fund.
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Actis exits Globaleq Africa stake to Norfund in $227 million cash deal
Image Credit: Globaleq
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Private Equity
Mara Sokoni on hunt for $100mln to fund initial roll-out
// wsj.com
Mara Sokoni, the new online marketplace launched by Ashish Thakkar's Mara group, is looking for $100 million from investors to fund the initial rollout of its platform, which is scheduled to launch in 10 African countries in early 2016. The firm plans to expand rapidly, aiming to have a presence in every country on the continent within the next three and a half years.
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Private Equity
M-FiTEC, a new SPAC soon to be listed on the Johannesburg Stock Exchange, is looking to raise $27 million to invest in financial technology companies in Africa. Greg Voigt, the Chief Investment Officer of the firm, tells
Business Day TV about the background, focus and plans for the firm.
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Projects & Portfolio Companies...
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Private Equity
In fully exiting its position in Equity Bank over the first six months of 2015,
Business Daily reports that Helios Investment Partners earned $500 million for its 25% stake in the Kenyan Bank. James Mwangi, Equity's CEO, told an investor briefing last week that the majority of the stake's acquirers paid a 10% premium on the market value of the shares. Analysts estimate that the sale earned the private equity firm about 436% on its original 2007 investment.
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This week's issue supported by...
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Attend SuperReturn Africa in Accra from 1-3 December, Africa's largest & most esteemed in-region event and gain exposure to:
* 550+ senior attendees
* 150+ local and international LPs looking to invest in the region
* 140+ industry leading speakers: Largest faculty ever!
* 60+ in-depth sessions: Unparalleled scope & depth of content
* Plus! New Real Estate Summit
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Perspectives - Venture Capital
With the weight of expectation laying heavily on the wants and needs of Africa's middle class delivering healthy returns for private capital investors, Maurizio Caio, found of venture capital firm TLcom Capital observes that "...
the vast majority of big, rising demand on the continent is coming from low-income segments
."
Considerable opportunity exists for those firms who successfully leverage technology to solve problems and meet basic needs such as access to electricity education, healthcare and commerce.
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Companies, People & Profiles... |
People News
Stuart Bradley, a Senior Partner and one of the three founding partners of Phatisa, the sub-saharan private equity fund manager, has been appointed to the position of Joint Managing Partner alongside fellow-co-founder Duncan Owen. Since 2005, Bradley has been an integral part of the Phatisa team which now has two sector-specific funds under management, totaling more than $285 million, focused on food and affordable housing.
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People News
In the latest move to bolster global law firm Squire Patton Boggs' Africa, Energy and infrastructure groups, Karim Maalioun is joining Squire Patton Boggs as a Partner in the firm's global corporate practice. Most recently, he was the General Counsel at ContourGlobal, an international developer and operator of electric power and district heating businesses.
He will be based in the firm's Paris office, but is expected to spend significant time in the London office.
Read more...
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Vice President for Africa-focused private equity firm
Based in London, UK
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Senior Associate, Africa-focused Private Equity firm
Based in London, UK
Read more...
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Principal, Investment Facilitation at CrossBoundary
Based in Bamako, Mali
Read more...
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Associate, Investment Facilitation at CrossBoundary
Based in Bamako, Mali
Read more...
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Energy Investment Associate at CrossBoundary
Based in Nairobi, Kenya
Read more...
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Senior Associates and Associates at QGIAM
Based in Port Louis, Mauritius
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Investment Director (Francophone) at CDC Group
Based in London, UK
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Investment Director for Financial Services sector in Africa
Based in London, UK
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Senior Investment Officer at DBSA
Based in Midrand, Gauteng, South Africa
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The Global African Investment Summit
London, December 1st to December 2nd, 2015
Read more...
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Ai CEO Institutional Investment Summit
New York, September 24th to September 25th, 2015
Read more...
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Africa Infrastructure and Power Forum
Beijing, October 15th to October 16th, 2015
Read more...
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Private Equity in Africa 2015
London, October 28th, 2015
Read more...
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Powering Africa: the Finance Options
Cape Town, November 5th to November 6th, 2015
Read more...
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Agrique Africa Investment Summit
Accra, November 17th to November 18th, 2015
Read more...
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13th Annual African Capital Markets Conference
Cape Town, November 26th to November 27th, 2015
Read more...
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TMT Finance & Investment World 2015
London, December 1st, 2015
Read more...
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Accra, December 1st to December 3rd, 2015
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We hope you found the digest to be a useful summary of the major happenings in Africa's private capital markets last week. We'd love it if you shared it with colleagues and business partners. They can sign up for free
here.
Best wishes for a productive week - if you have any tips, suggestions, questions or comments, please get in touch.
All the best,
- Allan
Allan Cunningham
Editor & Publisher
AfCD | Africa Capital Digest
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Africa Capital Digest is a product of Rowayton Press
Rowayton, CT 06853, USA
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