March 27th, 2017
The  weekly roundup of Africa's Private Capital news


  

Here's this week's wrap of the most interesting Africa-related private equity, infrastructure and venture capital deal stories, market opinion articles and information pieces.  Thank you being a reader and we look forward to continuing to keep you informed on the private capital investment themes, deals and fund raises in Africa.

As always, we'd be delighted if you shared it with any interested colleagues and/or business partners.  If they would like to receive their own weekly copy in 2017, they're more than welcome to sign up here. 

Finally, if you have any tips, suggestions or questions, please reach out to Allan Cunningham at acunningham@africacapitaldigest.com
This week's issue supported by...             
The Week in Brief...
Africa's private equity market watchers got a jolt on Friday. Not an unwelcome one, you understand, in fact rather the opposite. The biggest transaction in some time was announced by The Carlyle Group who have agreed to acquire Royal Dutch Shell's onshore assets in Gabon in a $587 million deal. The transaction is being executed through Assala Energy, an oil and gas exploration and production company established by Carlyle in 2016, and the capital will be deployed from two of Carlyle's funds-the $2.5 billion Carlyle International Energy Partners fund and Carlyle's $698 million Sub-Saharan Africa Fund.

The deal, which is expected to complete during the summer, is certainly the biggest by far of 2017 and could get even bigger. The deal calls for the assumption of the liabilities of the assets in question, which include a $285 million loan, and Shell could earn up to $150 million more on the deal depending on agreed commodity price and production performance criteria.

In terms of size, Carlyle's deals dwarfed the other transactions of the week. In the financial services sector, AMCON, the Nigerian entity set up to house Nigeria's non-performing bank assets in 2010, has sold one of those, namely Keystone Bank, after a competitive bidding process to a consortium of local investors. According to reports, the price paid by the Sigma Golf-Riverbank consortium was $81.5 million.

In another financial services transaction, South African asset manager Sanlam has struck a deal to acquire PineBridge Investments' majority stake in its East African business. Terms for this deal were not disclosed. The deal expands Sanlam Group's footprint and capabilities in the region and helps the South African financial services company fulfill its strategy of building a significant market leadership position in the region.

Staying in East Africa, private equity firm Ascent Capital is making an investment in Kisumu Concrete Products, a Kenyan construction materials manufacturer. The undisclosed amount of capital will be used to increase the company's production capacity and help it continue to improve the quality of its products and implement international quality standards. This in turn will allow the company to expand its market share in the region, which is reportedly experiencing something of a construction and real estate boom currently.

In an agriculture deal, CDC, the UK government's development finance institution, and social impact investor AgDevCo have teamed up to back Jacoma Estates with $11.5 million in equity and debt. The capital will be used to fund the macadamia nut producer's expansion plans for its farming operations in Northern Malawi. CDC is providing the lion's share of the capital, some $8 million in equity, whilst AgDevCo is providing the balance of $3.5 million as a mix of debt and preference shares. In addition to helping develop the operations of Jacoma's Tropha Estates which produce macadamia nuts, paprika and chili, the capital will provide local smallholders with up to 100 acres of year-round irrigation. 

In service provider company news, there was another marriage between two Mauritius-based trust and corporate services entities. Imara Trust announced it had acquired 100% of its fellow management company, FiducieForte. The deal adds more than 30% to Imara Trust's size.

Finally, there were a couple of high level people moves that came to our attention. Firstly, after 5 months of search, CDC's Board announced that it is appointing Nick O'Donohoe to be their new CEO and succeed Diana Noble who will step down from the role later in the year. And Peter Baird, former head of Standard Chartered's Africa private equity business has started in his new role as Managing Principal of Investec's Africa-focused private equity funds. He will head up the investment team responsible for investing and managing two funds totaling $450 million in size.

As always, you can review these and other stories by scrolling down and clicking through to them below.  

Oil & Gas Turkhana
The Carlyle Group has agreed to buy Shell's onshore Gabon assets for $587 million
Deals News...
Private Equity
Carlyle spends $587mln for Shell's Gabon assets
The Carlyle Group is investing $587 million from two of its funds to acquire Royal Dutch Shell's onshore assets in Gabon. The transaction is being executed through Assala Energy, an oil and gas exploration and production company established by Carlyle in 2016 to focus on energy-related opportunities in sub-Saharan Africa. Up to an additional $150 million could be paid in the transaction subject to agreed commodity price and performance production factors.
Private Equity
Sanlam acquires PineBridge Investments East Africa
Sanlam's Emerging Markets business is acquiring a majority stake in PineBridge Investments East Africa Limited in an undisclosed deal. The transaction, which is subject to regulatory approval, sees global asset manager PineBridge Investments fully exit its holding in the business.
Private Equity
Ascent takes undisclosed stake in Kisumu Cement
Adding a fourth asset to the portfolio of its $80 million Ascent Rift Valley Fund, East Africa-focused private equity firm Ascent Capital is making an investment in Kisumu Concrete Products, a Kenyan construction materials manufacturer. Neither the amount of capital invested nor the size of the stake acquired were disclosed.
Private Equity
CDC and AgDevCo back Jacoma Estates with $11.5mln
CDC, the UK government's development finance institution, and social impact investor AgDevCo have teamed up to back Jacoma Estates with $11.5 million in equity and debt. The capital will be used to fund the macadamia nut producer's expansion plans for its farming operations in Northern Malawi.
Projects & Portfolio Companies...
Financial Services
AMCON sells Keystone Bank for $81.5mln
Nigeria's Central Bank and the country's Securities and Exchange Commission have given their blessing to the sale of Keystone Bank to a consortium of local investors for a reported $81 million. The Asset Management Corporation of Nigeria, commonly referred to as AMCON, announced the sale of the entire issued and fully paid up share capital of the bank to the Sigma Golf-Riverbank Consortium.
This week's issue supported by...             
Trends & Perspectives...
Perspectives
Private Equity interest in East Africa quickens
While M&A in Africa fell by nearly a third in 2016, the drop in East Africa was only 10%. As some of the higher-profile private equity firms have stepped up their sourcing activities in the region, the Financial Times reports that businesses and their advisors are watching carefully to see if they can gauge interest levels accurately.     
Perspectives
Private Equity's impact on Africa's development falls short 
While private equity firms have deployed approximately $16 billion in capital across the continent since 2011, optimism that this will finance development needs to be tempered. Writing in the Financial Times, Judith Tyson of the Overseas Development Institute explains why.
Companies, People & Profiles...
Companies
Brait halts listing plans on Brexit doubts
Brait, the South African investment company which was intending to list on the London Stock Exchange to raise its profile in the UK and tap deeper pools of capital, is putting a halt to its plans in response to uncertainty caused by the country's decision to leave the European Union.
Companies
Imara Trust acquires FiducieForte
Imara Trust, the trust and corporate services subsidiary of Imara Holdings, has bought out Mauritius-based management company FiducieForte Management Services, increasing the size of their business by more than 30%. Financial terms of the deal were not disclosed.
People
Baird takes up the private equity reins at Investec
Peter Baird, who formerly led Standard Chartered's private equity business in Africa, has started in his new role as Managing Principal of Investec's Africa-focused private equity funds. He will head up the investment team responsible for investing and managing two funds totaling $450 million in size.
People
CDC taps O'Donohoe as new CEO
Nick O'Donohoe has been appointed as the new Chief Executive Officer of CDC, the UK's Government's development finance institution, succeeding Diana Noble who last September announced her intention to step down from the role.
Upcoming Investment Missions...
African Agri Council's Investor Discovery Trade Mission and Technical Tour
Starts  April 17th, 2017 in New York
To request an invitation, please send an email to Julia Barton-Hill
This week's issue supported by...             
 
As part of its 10th anniversary celebrations, the Africa Finance Corporation (AFC), the continent's leading public-private sector infrastructure finance institution, is bringing together many of the top international players in this sector for high level discussions during AFC Live 2017, Africa's premier infrastructure summit.

The second edition of AFC Live also comes at a time of great global changes and shifting priorities. The time for fresh strategies is now. The event will provide an invaluable platform to public and private sector players to convene, interact, exchange inside knowledge, view opportunities, review recent success stories, study innovative solutions and chart the way forward.

If you are involved in any capacity in the African infrastructure space, you cannot afford to miss this unique opportunity.
Current Job Postings...
Reserve this position for your job ads...

AfCD counts the most active, dynamic and experienced Africa-focused investment professionals among its readers. Bolster your 2017 recruitment efforts by advertising your vacancies in this highlighted position to attract the very best applicants.
 Email Teresa Hall today to find out about rates and availability.
Director, Industrial and Trade Development at AfDB  // afdb.org
Based in Abidjan, Côte d'Ivoire
Investment Anaylst at E Squared Investments  // thegiin.org
Based in Johannesburg, South Africa
Chief Operating Office at Africa50  // africa50.com
Based in Casablanca, Morocco
Vice President at Proterra Partners  // proterrapartners.com
Based in London, UK
Principal, Client Relations at IFC Asset Management Company  // ifc.org
Based in London, UK
Senior Investment Associate at Proterra Partners  // proterrapartners.com
Based in London, UK
Post Merger Integration Specialists at KPMG  // kpmg.com
Based in Johannesburg, South Africa
Portfolio Manager, Africa at Deutsche Bank  // db.com
Based in London, United Kingdom
Global Network Manager at Capria  // capria.vc
Based in Seattle, United States
Office Manager, Africa at I-DEV International  // idevinternational.com
Based in Nairobi, Kenya
New to AfCD this week...
Partner, Africa at Capria  // capria.vc
Based in London, UK or Africa
Senior Associate at Fieldstone Private Capital  // fieldstoneafrica.com
Based in London, UK
Upcoming Conferences...
Highlighted Event...             
14th Annual AVCA Conference 
Abidjan, April 4th to April 5th, 2017 
Euromoney Côte d'Ivoire Conference   // euromoney.com
Abidjan, March 28th to March 29th, 2017 
Columbia University's African Economic Forum 
New York, April 1st, 2017 
Bonds, Loans & Sukuk Africa 
Cape Town, April 5th to April 6th, 2017 
Africa Tech Summit 
London, April 20th, 2017 
Africa Financial Services Investment Conference 2017 
London, May 3rd to May 5th, 2017 
New this week...
African Nordic Business Conference 2017 
Helsinki, May 4th, 2017 
New this week...
Euromoney Kenya Conference   // euromoney.com
Nairobi, May 9th, 2017 
AFC Live 2017 
Abuja, May 15th to May 16th, 2017 
IFC & EMPEA's Annual Global Private Equity Forum 
Washington, DC, May 15th to May 17th, 2017 
TMT Finance Africa 2017 
London, May 24th, 2017 
East Africa Real Estate Investor Forum 2017 
London, June 8th, 2017 
19th Annual Africa Energy Forum 
Copenhagen, June 7th to June 9th, 2017 
And finally...
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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