The
weekly roundup of Africa's Private Capital news
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Here's the latest weekly wrap of the most interesting Africa-related private equity, infrastructure and venture capital deal stories, market opinion articles and information pieces.
Thank you for being a reader and we look forward to continuing to keep you informed on the private capital investment themes, deals and fundraisings in Africa.
We'd be delighted if you shared it with any interested colleagues and/or partners. If they would like to receive their own weekly copy, they're more than welcome to sign up here.
As always, if you have any tips, suggestions or questions, please reach out to Allan Cunningham at
[email protected]
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This week's issue supported by...
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In announcing its third direct Africa deal, private equity group
Wendel was responsible for the largest private equity transaction of the week,
committing to spend up to €120 million over the next few years to acquire a 40% stake in SGI Africa, a pan-African developer and operator of shopping malls.
SGI Africa was launched in 2015 by CFAO Group, a distributor of brands, which retains 40% of the company. The balance of 20% will be held by FFC, a partnership between CDC International Capital and the Qatar Investment Authority. The deal brings Wendel's total investment in African companies to more than €800 million since 2013.
In dollar terms, the largest chunk of capital was being lined up by
Africa Finance Corporation which is
acting as the lead arranger of a $425 million senior mezzanine facility for New Age, an oil and gas exploration, development and production company with assets in Africa. AFC is investing $75 million in the deal, with EIG Global Energy Partners and a Middle East-based Sovereign Wealth Fund are among the other lenders on the deal.
Originally announced in November last year, Atlas Mara's cash and share deal to buy Finance Bank of Zambia has now closed. Atlas Mara ended up paying approximately $61 million and 3.3 million shares of Atlas Mara stock, a slight increase on the price agreed when the deal was originally announced. The plan is to
combine Finance Bank of Zambia with its existing Zambian subsidiary, BancABC Zambia, creating one of the largest banks in the country. The pro forma combined assets of Finance Bank of Zambia and BancABC Zambia as at the end of December 2015 totaled approximately $567 million.
Nedbank Private Equity is joining the roster of
Comsol's investors following the private equity firm's participation in a deal that saw the wireless access provider benefit from an initial R500 million or $34 million of investment. As a result, Nedbank becomes a 25% shareholder in Comsol, alongside existing shareholders
Convergence Partners and the company's management team.
The capital will be used to help the company
launch Comsol Fibre Connect, a nationwide open access high-speed carrier grade data network.
Mezzanine fund manager
Vantage Capital has disbursed $8.5 million to
Vumatel, the South Africa fibre-to-the-home service provider, in the second and final tranche of a $17 million expansion capital facility. The deal is the latest transaction for Vantage's third mezzanine fund which is targeting a final close of $270 million, 40% of which is being allocated to South African opportunities. Originally a
greed in April this year, the mezzanine facility was structured in two equal tranches of R125 million or $8.5 million, available for draw down upon the achievement of certain operational and financial goals by the company. It seems progress has been quick.
Leaf Capital, the Cape Town-based corporate advisory, private equity and property fund management firm, is taking a significant minority stake in Wellness Warehouse. The deal is being transacted through Leaf Capital Infinitus, the firm's open-ended fund that was established in early 2013.
Wellness Warehouse is specialist retailer of healthcare and wellness products which it sells through a network of 16 brick-and-mortar stores in South Africa as well as through its online store.
Among the latest trend and data pieces published, Deloitte's 2016 Private Equity Confidence Survey expects private equity activity in South Africa, West Africa and East Africa to increase over the next 12 months, but at marginally lower levels than in the same survey in recent years. Opportunity is not evenly spread - there's optimism for East Africa's favorable economic climate but pessimism about West Africa's prospects while South Africa's economy is expected to remain lethargic.
And finally, with all the hype surrounding the Brexit vote, an analysis of the impact of an eventual "Brexit" from the EU on African trade, investment and security policy in three of the UK's most important markets on the continent - South Africa, Nigeria and Kenya.
As always, you can review these and other stories by scrolling down and clicking through to them below.
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Wendel commits €120 million to SGI Africa, owner/operator of PlaYce branded malls
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Wendel commits €120mln to SGI Africa
Wendel Group is committing to spend up to €120 million over the next few years to acquire a 40% stake in SGI Africa, a pan-African developer and operator of shopping malls. The private equity firm will kick off its commitment with an initial investment of €25 million once certain customary conditions have been met in the coming weeks.
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Private Debt
AFC lead arranger in $425mln mezzanine facility
Africa Finance Corporation is acting as the lead arranger of a senior mezzanine facility New Age (African Global Energy), an oil and gas exploration, development and production company with assets in Africa. AFC is investing $75 million in the deal which, when other lender commitments have been secured, will total almost $425 million. EIG Global Energy Partners and a Middle East-based Sovereign Wealth Fund are among the other lenders on the deal.
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Private Equity
Atlas Mara deal for FBZ closes
Originally announced in November last year, Atlas Mara's cash and share deal to buy Finance Bank of Zambia has now closed, helping the sub-Saharan financial services group create one of the largest banks in the country once it combines Finance Bank of Zambia with its existing Zambian subsidiary, BancABC Zambia.
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Nedbank takes 25% stake in Comsol
Nedbank Capital is joining the roster of Comsol's investors following the private equity firm's participation in a deal that saw the wireless access provider benefit from an initial R500 million or $34 million of investment. As a result, Nedbank becomes a 25% shareholder in Comsol, alongside existing shareholders Convergence Partners and the company's management team.
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Private Equity
Vantage releases $8.5mln second tranche for Vumatel
Mezzanine fund manager Vantage Capital has disbursed $8.5 million to Vumatel, the South Africa fibre-to-the-home service provider, in the second and final tranche of a $17 million expansion capital facility it is providing the company. The deal is the latest transaction for Vantage's third mezzanine fund which is targeting a final close of $270 million, 40% of which is being allocated to South African opportunities.
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Leaf Capital takes minority stake in Wellness Warehouse
Leaf Capital, the Cape Town-based corporate advisory, private equity and property fund management firm, is taking a significant minority stake in Wellness Warehouse. The deal is being transacted through Leaf Capital Infinitus, the firm's open-ended fund that was established in early 2013.
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Esaja lands backing from Swastika
Pan-African B2B marketplace Esaja has landed an undisclosed amount of capital in a round led by Jong Kong based investment company Swastika, becoming the Hong Kong-based investor's first African portfolio holding in the process. Terms of the deal were not reported.
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This week's issue supported by...
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Projects & Portfolio Companies...
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CDC backs AIG with €50mln
CDC, the UK's development finance institution, is making a €50 million investment in Rocket Internet-backed Africa Internet Group, the parent company of Jumia, the high-profile online consumer retail brand. The capital will be used to improve the company's existing operations and help it achieve its expansion plans to new countries. Additional terms of the investment were not released.
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Opportunity in Africa's insurance market is stirring
A rising middle class and a returning diaspora all point to opportunity for Africa's insurance market as more and more people look to protect their standards of living. A number of insurance-related acquisitions on the continent have made headlines over the last 12 months and the trend is expected to continue across a large number of sub-sectors within the insurance industry.
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AVAILABLE NOW!
The 2016 Guide to sub-Saharan Private Equity
178 Investment firms, 1,167
Investment Professionals,
1,029 Portfolio Companies
*178 Firm Profiles,1069 Investment professionals,
1025 Portfolio Companies
*Active funds, Regional and Sector Preferences
*Headquarter and Regional Office contact details
*7 Quick reference indexes of firms, fund managers, portfolio companies and sectors
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Trends
Steady growth for private equity in Africa in 2016
Respondents to Deloitte's 2016 Private Equity Confidence Survey expect private equity activity in South Africa, West Africa and East Africa to increase over the next 12 months, but at marginally lower levels than in the same survey in recent years. Opportunity is not evenly spread - there's optimism for East Africa's favorable economic climate but pessimism about West Africa's prospects while South Africa's economy is expected to remain lethargic.
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Perspectives
Brexit's likely impact on Africa
An analysis of the impact of an eventual "Brexit" from the EU on African trade, investment and security policy in three of the UK's most important markets on the continent - South Africa, Nigeria and Kenya.
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Companies, People & Profiles...
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Companies
White & Case opens Cairo office
With a goal to be up and running by mid-October this year, U.S. law firm White & Case is opening its second permanent office on the African continent in Cairo, thereby strengthening its Middle East and North Africa practice. After 15 years serving clients in the country, the move to establish a permanent foothold comes in response to increasing demand from both the firm's Egyptian clients and international clients investing there, according to firm Chairman, Hugh Verrier.
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People
Goodbye London, hello East Africa
Frederico Pirzio-Biroli, the founder of London VC firm Playfair Capital, is leaving the UK's capital city to become an angel investor in East Africa. Having worked at NGOs in Africa before becoming a technology investor, he appreciates how much of a difference angel investing on the continent can make to developing economies.
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Associate, Corporate Finance Advisory at MCB Capital Markets
Based in Port Louis, Mauritius
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Investment Officer, Healthcare at LeapFrog Investments
Based in Johannesburg, South Africa
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Private Equity Associate at Musa Capital
Based in Johannesburg, South Africa
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Investment Officer at LeapFrog Investments
Based in Johannesburg, South Africa
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Chief Financial Officer for leading Private Equity firm
Based in Harare, Zimbabwe
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Chief Operating Officer at AVCA
Based in London, United Kingdom
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VP, Agriculture Investments at Quantum Global
Based in Port Louis, Mauritius
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VP, Healthcare Investments at Private Equity firm
Based in Port Louis, Mauritius
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VP, Mining Investments at Quantum Global
Based in Port Louis, Mauritius
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Senior Manager, Research at AVCA
Based in London, United Kingdom
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Investment Associate, Renewable Energy at Cytonn Investments
Based in Nairobi, Kenya
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Analyst at African Capital Alliance
Based in Lagos, Nigeria
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Dubai, October 24th to October 26th, 2016
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Angola Infrastructure & Renewable Energy Investment
Luanda, July 12th to July 13th, 2016
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The Global African Investment Summit Kigali
Kigali, September 5th to September 6th, 2016
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London, September 14th to September 16th, 2016
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Lagos, September 20th, 2016
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Kenya International Renewable Energy Congress
Nairobi, October 3rd to October 5th, 2016
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8th Africa PPP Conference & Showcase
London, October 24th to October 26th, 2016
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Sub-Saharan Africa Power Forum 2016
Dubai, October 26th to October 28th, 2016
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International Islamic Banking Summit Africa
Djibouti, November 2nd to November 3rd, 2016
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Cape Town, November 29th to December 1st, 2016
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The Global African Investment Summit London
London, November 30th to December 1st, 2016
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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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Copyright © 2016 Rowayton Press, LLC. All Rights Reserved.
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