For Online E-newspaper
The East African : December 30th 2013
The EastAfrican BUSINESS DECEMBER 28, 2013 - JANUARY 3, 2014 41 THE FAIR Competition Commission said it received six applications for mergers between April and September 2013. However, it approved only SELECTED M&A DEALS IN TANZANIA VODACOM Deal: Vodacom Group buys 35 per cent stake in Cavalry Holdings Britam Group managing director, Benson Wairegi (left) and the chairman of Real Insurance Sam Kamau exchange documents soon after announcing Britam’s acquisition of a 99 per cent stake in Real Insurance. Picture: File one merger application. The remaining five applications were at various stages of analysis. They were Apollo Acquisition Corporation and Cooper Tire & Rubber Company; Prince Bank Ltd, First Merchant Bank and Premier Capital Mauritius Ltd seeking to merge with International Commercial Bank; SCPE, CSSAF & Prif Afrivest merging with ETC Group (Mauritius) Ltd; and Trans Union Africa Holdings Proprietory Ltd seeking to merge with Credit Reference Bureau (Holdings) Ltd. PAVILION ENERGY Deal: Pavilion Energy Group buys stake in Ophir Energy which holds distribution rights of the Bridgestone brand of tyres in Kenya, is 57.24 per cent owned by Sameer Investments. Sameer investment is expected to then offload part of its stake in Sameer Africa to an undisclosed strategic investor rumoured to have put the exit of Bridgestone from the company as part of the conditions the firm had to meet if he was to invest in it. SAFARICOM Deal: Safaricom buys Yu’s 10 per cent stake in the The East Africa Marine System (Teams) undersea cable Value: $11 million Progress: Closed THE NAIROBI bourse-listed telecom acquired the stake from Yu mobile at $11 million (Ksh955 million) to offer faster and more efficient Internet data services as well as support the upgrade of its network to 4G. The deal pushed Safaricom’s ownership of the undersea fibre optic network to 32.5 per cent, a share that guarantees the operator additional capacity in Teams, which is offered based on shareholding. FINA BANK Deal: Nigerian Guaranty Trust bank buys Fina bank Value: $100 million Progress: Closed NIGERIA’S GUARANTY Trust Bank (GT Bank) acquired a 70 per cent stake in Kenya’s Fina Bank Ltd for $100 million. The Nigerian bank will acquire the majority stake in Fina Bank, through a share purchase from current shareholders and direct investment. Fina Bank had a $184 million loan book as at March 31 and operates 38 branches across East Africa. SELECTED M&A DEALS IN UGANDA DFCU LTD Deal: Actis, Norfund and Rabobank of the Netherlands Date: April 2013 Value: $43 million NORFUND AND RABOBANK of the Netherlands, a leading European agricultural lender, acquired a 45.02 per cent share in DFCU Ltd from Actis, the British private equity firm. 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 significant expertise in the agricultural value chain. The transaction also expanded Ra- bobank’s African presence to four countries that include Rwanda, Tanzania and Zambia as well. MUKONO PUBLISHING LTD Deal: Fusion Capital and Mukono Printing and Publishing Company Ltd Value: Undisclosed Progress: Closed FUSION CAPITAL, a Kenyan private equity firm, acquired a stake in Mukono Printing and Publishing Company Ltd, one of Uganda’s oldest publishing houses. This investment will fund the publisher’s relocation of production equipment from the city to Namanve Industrial Area alongside purchases of hitech printing machinery estimated to cost more than $1 million. Value: $1.228 billion Progress: Closed OPHIR ENERGY, a local oil and gas exploration company sold a stake to Pavilion Energy Group, which is owned by the government of Singapore. The deal involved the ac- quisition by Pavilion of 20 per cent of Ophir Energy interests valued at $1.228 billion (about Tsh1.8 trillion). This is equivalent to 10 per cent of the country’s national budget for FY-2013/14 — or the gross domestic product of Kigoma Region. Under the deal, the Singa- porean company acquired assets from three out of the five exploration blocks owned by Ophir Energy and the BG Group. Ophir Energy remains with 20 per cent shareholding of the five blocks, while the BG Group remains with 60 per cent majority shares. Value: $242 million Progress: Closed VODACOM GROUP purchased a 17.2 share from Cavalry Holdings that owned a 35 per cent stake in Vodacom Tanzania through Mirambo Ltd. Cavalry Holdings, a private investment company registered in Jersey Islands, was expected to bag $242 million (Tsh 387 billion). The South Africa-based Vodacom Group’s shareholding, prior to the deal, stood at 65 per cent and acquisition of the new shares mean that the company will now command an 82.2 per cent shareholding. Mirambo Ltd, which is owned by Tanzanian businessman Rostam Aziz, will retain its shareholding in Vodacom Tanzania at 17.8 per cent. HELIOS TOWERS AFRICA Deal: Helios Towers Africa to buy towers from Vodacom Value: $75 million Progress: Closed HELIOS TOWERS Africa (HTA), an African infrastructure company has committed to buy more than 1,000 telecoms towers from Vodacom, the Vodafone-backed operator in Tanzania, in a $75 million deal. Vodacom is to transfer 1,149 telecoms towers to Helios Towers Tanzania (HTT), which will also commit to installing new towers. The transaction will see Vodacom acquire a quarter stake in the business as part of the transaction. The chief executive of Helios Africa, Chuck Green, said that there were a number of deals in the pipeline, underscoring the interest among the region’s mobile operators in partnership agreements with companies such as Helios as well as rivals IHS and America Towers. He said about 18,000 towers that could be acquired in the next year, representing deals valued at about $2billion. SELECTED M&A DEALS IN RWANDA LIQUID TELECOM Liquid Telecom takes over Rwandatel assets Value: $4m Progress: Closed IN JUNE THIS year, Liquid Telecom, a Mauritius based fibre-optic firm, bought assets and businesses of Rwanda’s oldest telecom company for $4 million. Liquid Telecom acquired the assets during the liquidation process to raise money for suppliers when shareholders, the Libyan government’s African Investment arm Lap Green with 80 per cent stake and National Social Security Fund, with a 20 per cent share- holding, failed to recapitalise the company. Liquid Telecom is the subsidi- ary of African telecommunications group Econet Wireless. Liquid has the largest fibre-optic network reach in Africa as its infrastructure extends 13,000 km from Cape Town to East Africa. In the deal, Rwandatel’s assets, including the copper and fibre network, now belong to Liquid Telecom. The acquisition of Rwandatel’s assets came few months after Liquid Telecom bought the East African assets of the JSE-listed Altech group, including a controlling interest in Kenya Data Networks (KDN). FUSION CAPITAL Deal: Fusion Capital buys a stake in Rusororo stone quarry Value: $2 million Progress: Closed Kenya Data Network worker laying fibre optic cables along Magadi road. Picture: File FUSION CAPITAL, a Kenyan firm, acquired a 46.5 per cent equity stake in Rusororo Aggregate Ltd to cash in on the booming construction industry. The deal puts Rusororo Aggregate in a position to improve its production processes, marketing and transportation of products hence making it competitive.
December 23rd 2013
January 6th 2014