Black Affairs, Africa and Development

Africa Deals hit a $4bn in 2013 (Exclusive)

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Private equiteers revealed about $4billion worth of Africa-based deals in 2013, almost  four times the $1.1billion recorded in the previous year, according to combined research from Preqin and Private Equity Africa.
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The 2013 figure is the second highest reached in Africa since 2006, only surpassed by the $7.2billion reported in 2007, at the height of  the global private equity boom,  according to Preqin data.  The data only covers revealed deal values.
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Overall, last year’s values were bolstered by the gigantic $1.525bn deal from Helios and Brazil’s BTG Pactual, who partnered to invest in Nigeria-based Oil & Gas exploration company, Petrobras Africa.
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Deal making values were also spiked by the colossal $1.035billion IHS club deal led by Emerging Capital Partners and Investec Asset Management. The duo led a number of investors to infuse fresh capital into their Nigeria-based telecommunications infrastructure services portfolio company.
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Preqin’s preliminary figures place last year’s aggregate values  at approximately $3.9billion, while Private Equity Africa has this at $4.4billion, adjusted to include Abraaj’s sizeable investment into Fan Milk, a Ghana-based consumer food company. The deal value was confidential, but is understood to be just over $400million – making it the largest consumer deal closed historically in Sub -Saharan Africa, ex-South Africa.
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Private Equity Africa’s figures have also included the $137million Helios and Kinnevik investment into South Africa’s Bayport Management Limited. Helios contributed $100 million to the financial services deal.
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Actis drove up deal values by committing at least $900 million across four of the continent’s top-10 deals of the year. The investor’s largest disclosed commitment was its $484million investment into two Morocco-based utility services companies Redal and Amendis.
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Actis also committed $220 million to Cameroon’s national electricity energy provider, Société Nationale d’Electricité (Sonel), and two other power generation plants, Kribi and Dibamba. Meanwhile, the large-cap investor also committed $102 million investment into Egypt’s Edita Food Industries, a consumer food company.
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Elsewhere, Actis also backed the management buyout (MBO) of South Africa-based financial technology services company Paycorp, in a deal valued at approximately $95 million. Actis bought the company from Transaction Capital, a holding company part-owned by Ethos Private Equity.
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Other large deals in 2013 are Capitalworks and RMB Ventures’s $144 million investment into Construction Products Africa, a South Africa-based manufacturing operating platform. Also seen in the large-cap space was Satya Capital’s Nigeria-based Guaranty Trust Bank (GTB), with a $100 million bolt-on acquisition of Kenya’s Fina Bank.
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Last year saw dealers deliver over 60 Africa-based transactions in 2013.
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The most active sectors in 2013 were industrials and business services which respectively contributed about 20% and 19%, respectively, to the deal volumes. They were tailed by food & agriculture which brought in 18% of the deal volumes. The consumer & retail space recorded 11% of the year’s deals, according to figures from Preqin.
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The year saw dealers deliver a good number of the much sought after large-cap deals, with the average disclosed deal size resting at $161million. This is over 50% larger than the $105 million average in 2012.  Average deal sizes are however yet to touch the $217 million record high recorded in 2007 – a year that saw investors bring in about $7billion worth of transactions, according to Preqin figures.
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