Who's doing what in the African M&A space?


Who's doing what in the African M&A space?

Published Date: 2020-06-05 | Source: DealMakers | Author: Marylou Greig

Who's doing what in the African M&A space?

DealMakers AFRICA

  • Altona Energy plc, an Australian-based mining exploration company, has entered into a Memorandum of Understanding (MoU) with mining consultancy company Akatswiri Mineral Resources to acquire a majority stake in a rare earth mining project (Akatswiri Rare Earths) in the Chambe Basin, Mulanje in Southern Malawi. In terms of the MoU, Altona will initially acquire a 51% stake in ARE, increasing to 75% on certain project milestones being met. Alatswiri will remain a 25% shareholder. The consideration will be met in Altona Energy ordinary shares.
  • Sonatrach, Algeria's state-owned oil company, has acquired a 51% stake in the offshore Medgaz gas pipeline. Naturgy, the Spanish gas and power utility holds the remaining 49%. Financial details of the transaction were undisclosed.
  • Mako Gold headquartered in Australia, has signed a definitive sales agreement with Nordgold SE to sell the Niou Permit and Niou Sud Permit in Burkina Faso for US$700,000 in cash. In addition to the cash consideration, Mako will retain a 1% Net Smelter Royalty (NSR) if Nordgold discovers a gold resource of at least two million ounces and advances the resource to production. Norgold has the option to purchase the NSR at any time for $4,5 million.
  • The Public Investment Corporation SOC (PIC) an asset management firm wholly owned by the government of South Africa, has acquired a 13% stake for US$50 million in Aradei Capital, a real estate platform headquartered in Morocco specialising in commercial real estate assets. The transaction is a mixed capital increase and a partial block-sale of shares held by the European Bank for Reconstruction and Development (EBRD). The PIC joins other investors in Aradei Capital such as Label'Vie (LBV), SANAM Holding and Best Financiere.
  • The Holmarcom Group is to merge its two Moroccan insurance companies, Atlanta and Sanad on the basis of an exchange of 11 Atlanta shares for 1 Sanad share. The transaction is expected to be completed in September 2020.
  • Platform Capital, a growth markets investor, has invested in the East African technology driven, consumer credit platform Lipa Later. It provides a risk free, point of sale credit option that allows retailers to sell goods and services to consumers with repayments made in affordable monthly instalments. Platform Capital will provide strategic support to explore new markets and opportunities as it looks towards expansion into Nigeria.
  • SilverStreet Capital a UK based investment advisor managing African agricultural funds, has committed to investing a further K91 million in Zambia Seed Company (Zamseed). The new funding is to be used to revamp Zamseed's processing plant in Lusaka and to significantly expand its research capability and vegetable seed product line.
  • Tana Africa Capital, an Africa-focused investment company founded by E. Oppenheimer & Son International and Temasek, is reported to be in discussions to invest through its second fund Tana Africa Capital II for a 25% stake in Mabaret Al Asafra, a hospital operator in Alexander, Egypt.
  • AgDevCo,a social impact investor and project developer working in the African agriculture sector, has announced an investment in Pee Pee Tanzania. The investment, the size of which was undisclosed, aims to assist the Tanzanian company which manufactures and distributes grain storage bags to increase its production and so assist in reducing post-harvest grain losses. These losses account for up to 13.5% of grain production, brought on by the lack of storage facilities.
  • Nigeria LNG , a liquefied natural gas-producing company, has secured US$3 billion from a group of 31 investors for development of its Train 7 project. The project is scheduled for commissioning in 2025 and will include a new liquefaction unit, an 84,200m³ storage tank, a 36,000m³ condensate tank and three gas turbine generators. On completion, the company will be placed among the top five producers and exporters of LNG in the world.
  • Tanzania Postal Bank (TPB), has acquired the assets and liabilities of TIB Corporate Bank, a fully-fledged commercial bank owned by the Government of Tanzania. Following the merger, the total assets of TPB stands at Sh1,002 trillion.
  • Access Bank plc Nigeria's largest retail bank, has increased its stake in Access Bank (Rwanda) to 75%.
  • Zoscales Partners, a leading investment management firm specialized in private equity investments in East Africa, has invested in Ethiopian diagnostic imaging service provider Pioneer Diagnostics Centre. Funds will be used to acquire state-of-the-art equipment and software.
  • Evolution II Fund has partnered in a joint venture with the management of Building Energy, following the buy-out of Building Energy's Africa and Middle East businesses, to launch the newly branded integrated IPP, Red Rocket. The new joint venture, in which Evolution II holds a majority stake, will see the re-capitalisation and positioning of Red Rocket to become a leading emerging renewable energy independent power producer in Africa.
  • Eversend a digital finance platform providing, among other services, cross-border money transfers and multi-currency wallets, has raised US$706,000 in investment through a Seedrs crowdfunding campaign in return for a 8.74% equity stake. The funds will be used for product development, user acquisition and regulatory compliance but also to expand offerings to Nigeria, Francophone Africa and Europe.
  • xetova, a Kenyan procurement startup, has secured a funding commitment from angel investors Laurent Lamothe who founded R-Ventures, an emerging markets-focused venture capital fund and Sewu-Steve Tawla and Aniko Szigetvari, the founding partner of Atlantic Ventures.
  • Jamborow, a Nigerian B2B AI and Blockchain driven fintech platform focused on financial inclusion and grass root empowerment, has reportedly raised US$400,000 from its shareholders to expand its offering to the unbanked.

DealMakers Africa is the Continent's M&A publication.

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