Publicly announced deals since the beginning of the year

Saturday September 14 2013

By The EastAfrican


Deal: International Finance Corporation (IFC) invests in Kenya-based greenfield real estate, the Actis’s Garden City
Value: $9.8m
Date: May

International Finance Corporation (IFC) invested $9.8 million in the Kenya-based greenfield real estate, the Actis Garden City located on Thika Road. The mall will house a 50,000 square metre retail centre, over 420 apartments and town houses, commercial offices and a stunning three acre central park open to all. It is being built on a 32-acre piece of land. The Garden City project has been recognised as a flagship of Vision 2030. Garden City will also be the first LEED (Leadership in Energy and Environmental Design) certified retail mall in East Africa, translating into lower water and electricity bills for tenants and residents, he said. Its power source will be a 1MW solar power generation plant.

Deal: Pan Africa Insurance acquire Sanlam Asset Managers Kenya
Date: September
Value: Unknown

Pan Africa Insurance concluded its acquisition of Sanlam Asset Managers Kenya in a phased acquisition that started in 2008. The asset manager, which is now a wholly owned subsidiary of the insurer, will manage funds mobilised through its life business. The acquisition will also enable Pan Africa to distribute additional products such as unit trusts, thus increasing its fee income.

Deal: CIC announces subsidiary in South Sudan to partner with the government
Value: unknown
Date: March

CIC will have a 69 per cent shareholding while the Co-operative Bank of South Sudan will acquire the remaining 31 per cent. The expansion into Uganda will result in the acquisition of a 40 per cent associate stake in an insurance company to be formed with the Uganda Co-operatives Savings and Credit Union.

Deal: Private equity fund Actis sells a 45.02 per cent stake to the Norwegian Investment Fund for Developing Countries and Rabo Development BV through the USE
Value: Ush111.9b ($43.2m)

NORFUND purchased a 17.48 per cent stake, increasing its shareholding to 27.54 per cent while the subsidiary of Rabobank of Netherlands purchased the other 27.54 per cent, leaving Actis with only 15 per cent of dfcu Ltd.
Transaction advisors: African Alliance and CfC Stanbic Financial Services Uganda

Deal: Dimension Data Plc makes bid for AccessKenya
Value: Ksh3.05b ($36.4m)

Dimension Data Plc proposed to buy AccessKenya for Ksh14 ($0.17 or R1.50) per share, which is a premium of 42 per cent, compared with the closing price of Ksh9.85 ($0.12) at the NSE on May 3. Three directors, David Somen, Jonathan Somen and Michael Lewis Somen, who hold a combined 30.3 per cent stake or 66.05 million shares, stand to make Ksh924.7 million ($11 million). As at the close of last year, AccessKenya had 218 million shares and 28,288 shareholders.
Transaction advisors: Lead financial advisor is Pamoja Capital, financial advisor and sponsoring stockbroker is Standard Investment Bank and the legal advisor is Coulson Harney

Deal: Jamii Bora restricted bond offer
Value: Ksh1b ($11.46m)
Date: July

The bond is paying interest at 13.3 per cent per annum every six months. The five-year bond, which comes with an option of early redemption after three years, has a 50 per cent guarantee from Africa Guarantee Fund, which is a subsidiary of Africa Development Bank. It became tradable on the over-the-counter market beginning August 26 The issue was oversubscribed by 2 per cent.
Transaction advisors: Standard Investment Bank and Faida Investment bank were the joint arrangers, placing receiving and fiscal agents; Mayfair Centre was the bond guarantor, Walter Kantos Advocates was the legal advisor, Deloitte and Touche was the auditor and Ropat Trust Company was the bond trustee. 

Deal: Al-Futtaim Group to acquire CMC Holdings
Value: Ksh7.5b ($86.67m)
Date: September

Al-Futtaim Group on September 9 announced that it intends to make a bid for all the 582.7 million CMC Holdings shares through a cash offer at Ksh13 ($0.15).
Transaction advisors: EFG-Hermes, an investment bank 

Deal: Shelter Afrique bond
Value: Ksh8b ($91.38m)
Date: September

Shelter Afrique is issuing up to Ksh3.5 billion ($39.9 million) of a bond offer that will eventually see it raise a maximum Ksh8 billion ($91.38 million). The five-year bond will be paying interest at an annual rate of 12.75 per cent in March and September of each year until the maturity date.

Deal: Amethis Finance in first equity investment in Chase Bank
Value: $10.5m
Date: March

The investment will go towards strengthening Chase Bank Kenya as the leading SME bank. The bank will continue to develop its retail footprint with the expansion of its network in various counties. Amethis Finance is an investment fund dedicated to Africa, with a total balance sheet at inception of $300m. 

Deal: Centum acquires a stake in Platcorp Holdings Ltd
Value: Unknown
Date: February

Centum Investment Company (Centum), a private Kenyan investment company, and Cassia Capital Partners, a US-based investment advising company, acquired a 45 per cent stake in Platcorp Holdings Ltd, the parent company of Platinum Credit Ltd, which operates in Kenya, Uganda and Tanzania. The acquisition was made at an undisclosed price via Kilele Holdings Ltd, in which Centum holds a 79 per cent stake and Cassia the remainder. 

Deal: Staya Capital acquires 25 per cent stake in Spanco BPO
Date: September

The transaction saw the exit of the joint owners of Spanco BPO, Spanco India, to make way for Satya’s entry. The company remained Ison BPO. Staya capital, a London-based company is associated with billionaire entrepreneur Mo Ibrahim.

Deal: Vanoil Energy Ltd buys 10 per cent interest of Avana Petroleum Ltd in offshore exploration Area L9, Lamu Basin
Value: Over $15m

Vanoil received $5 million loan facility in March from Kenya Fluorspar Holdings Ltd, a subsidiary of Fluormin Plc. The Toronto Stock Exchange-quoted firm, which owns onshore Area 3A and 3B in northeastern Kenya, advanced US$3.8 million to Avana. 

Deal: FAR Ltd acquires 30 per cent stake in offshore exploration Area L9
Value: $11m

FAR will pay about US$11 million for three-dimensional seismic surveys carried out in the past to map potential crude oil and natural gas deposits. Ophir Energy Plc now owns 60 per cent of offshore acreage L9, FAR Ltd has 30 per cent and Vanoil Energy Ltd 10 per cent stake acquired from Avana  Petroleum. 


Deal: Catalyst Principal Partners buys 95 per cent TransCentury stake in Chai Bora
Value: Unknown
When: January

Investment firm TransCentury sold its entire 95 per cent stake in Tanzania’s tea packaging firm Chai Bora to Catalyst Principal Partners. TransCentury bought Chai Bora in 2008 to get a hold of the agro sector and extend its reach beyond the Kenyan market. 

Deal: Helios Towers acquires Vodacom’s tower network
Value: $75m
When: June

Helios Towers Africa (HTA) signed a deal to acquire Vodacom’s telecommunications tower network in Tanzania. The transaction was structured as a cash and shares deal, with Vodacom assuming 24.5 per cent of Helios Towers Tanzania (HTT), which was set up to manage the company’s assets. HTT will lease the towers back to Vadocam through a long-term contract. HTA takes over 1,149 towers. The Vodocam acquisition raised the number of towers on the HTA platform to 4,700. 

Deal: Agri-Vie invests $6 million into Tanzania Food Corporation
Value: $6m
Date: June

According to Herman Marais, managing partner at Agri-Vie, the acquisition was motivated by rapid growth in consumer demand for processed beef products, brought about by rapid urbanisation in the region and increased consumer spending in the emerging markets of East Africa. 
The TFC operations area is mainly in Iringa in the Southern Tanzanian highlands, forming part of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a co-ordinated initiative to boost agribusiness in Tanzania through public and private investments.

Deal: Pan Africa Power Solutions buys IPTL
Value: Unknown
Date: August

Pan Africa Power Solutions Tanzania Limited (PAP) acquired Independent Power Tanzania Ltd (IPTL) after the local minority shareholder, VIP Engineering, sold its 30 per cent stake and gave consent to PAP to buy from Merchmar Corporation (Malaysia) Berhard the other 70 per cent shares to solely own IPTL. 

Deal: UAP buys 60 per cent stake in Century Insurance
Value: Unknown
When: June

UAP expanded its operations into Tanzania by acquiring a 60 per cent stake in Century Insurance.  Century Insurance is the tenth largest short-term underwriter, commanding a 4.83 per cent market share.  The Tanzanian firm changed its name to UAP Century Insurance Company Ltd. UAP Holdings has a subsidiary in Uganda as well as in South Sudan, and intends to enter the Rwandan market through greenfield projects.


Deal: Abraaj Group buys Vine Pharmaceuticals Ltd
Value: Unknown
Date: January

This investment is expected to finance Vine’s expansion outside Kampala, increase its wholesale supply chain that serves local hospitals and other pharmacies and boost overall market share. Abraaj Group hopes to tap into rising health spending. The transaction was arranged through Abraaj’s Africa Health Fund (AHF). 

Deal: Fusion Capital acquires Mukono Printing and Publishing Company Ltd
Value: Unknown
Date: April

Fusion Capital, a Kenyan private equity firm, acquired one of Uganda’s oldest publishing houses. This investment will fund the publisher’s relocation of the production equipment from the Kampala city to Namanve Industrial Area and purchase of hi-tech printing machinery estimated to cost more than $1 million.

Deal: Norfund and Rabobank acquire 45 per cent shares from
Value: $43m
Date: April 2013

Norfund and Rabobank of the Netherlands, a leading European Agricultural lender, acquired 45.02 per cent shares in DFCU Ltd from Actis, the British private equity firm. Through the acquisition, Norfund increased its stake in the listed lender by 17 per cent while Rabobank gained a 27.54 per cent, leaving Actis with a minority stake of 15 per cent. Rabobank’s entry is expected to boost DFCU’s agricultural lending business, backed by synergies from the former’s long experience spanning close to 60 years and expertise in the agricultural value chain. The transaction also widened Rabobank’s African presence to four countries that include Rwanda, Tanzania and Zambia. 

Deal: Gelp Service Stations Ltd acquires Tuskys Uganda
Value: Unknown
Value: July

Gelp, owned by Ugandan businessman, Godfrey Kirumira acquired Tuskys Uganda to enrich its fuel outlets with a fast-growing supermarket brand. Though Tuskys is entangled in court battles back home in Kenya over its brand name, Gelp appears eager to reap from brand mileage created by Tuskys’ local outlets after less than three years of operations. Gelp currently owns 12 filling stations, with five located in Kampala city.


Deal: Pearl Capital Partners makes investments through the African Seed Investment Fund

This fund closed 2010 with initial investment commitments from the Alliance for a Green Revolution in Africa (AGRA) of $12 million and has now invested in 12 African seed businesses. In Rwanda, Pearl invested $0.3 million in a convertible loan to the Forestry and Agricultural Investment Management Africa Ltd (FAIM Africa), the first commercial tissue culture business in Rwanda, with a demonstration farm in the eastern province. 

Deal: Liquid Telecom purchases Rwandatel assets
Value: $4m
Date: June

Liquid Telecom bought the assets from Rwandatel after it was declared bankrupt in 2011, in an effort to set foot in to Rwandan market as it expands its fibre optic network across Africa.