Weekly Investment Wrap (October 23rd): Quantum, OMAI, BPE Partners and others


By Allan Cunningham | Africa Capital Digest October 23, 2017

While there were no fundraising announcements in Africa last week, there were a few private equity deals. And a couple were in some of the more unusual sectors. Throw in a trio of portfolio company-related deals, and you have the full range of transaction activity for the week.

Quantum and Savannah Cement

Quantum Global Alternative Investment Management announced the completion of the sale of its stake in Savannah Cement following approvals from Kenya’s competition authority. Terms of the deal were not disclosed. Quantum had originally backed the cement company in 2015 via its $1.1 billion Infrastructure Fund, since when it has grown to produce up to 1.5 million tons of cement a year.

OMAI and Faircape Life Right

Old Mutual Alternative Investments is taking a 50% stake in Faircape Life Right Holdings for an undisclosed sum. The deal is being transacted on behalf of Old Mutual’s Retirement Accommodation Fund, a R2 billion investment vehicle launched in May 2015 to target opportunities offered by the growing demand for retirement accommodation in South Africa.

A subsidiary of The Faircape Group, Faircape Life Right Holdings owns and operates six luxury lifestyle villages with 976 residential units with associated healthcare facilities. The villages, which offer a selection of 1,2 and 3 bedroom homes with facilities specifically tailored for active retirees, are positioned in a variety of prime locations in the Western Cape.

AgDevCo and Uzima Chicken

In the first of two poultry-related deals announced last week, social impact investor AgDevCo announced it is backing Rwanda’s Uzima Chicken with $3 million of debt. The capital will be used to expand the company’s capacity to produce between 8 million to 10 million birds per year.

Public Investment Corporation and Daybreak Farms

Farther south on the continent, Public Investment Corporation or PIC, the manager of South Africa’s Government Employees Pension Fund, has received South Africa’s Competition Commission approval to take over troubled poultry producer, Daybreak Farms. According to reports, PIC has a turnaround strategy in place which is already beginning to bear fruit.

Impact Oil & Gas and Total

In portfolio asset-related deals, Impact Oil and Gas, an Africa-focused exploration company backed, by among others, Helios Investment Partners, has signed two deals with French oil major, Total. Both deals, which involve selling significant portions of a couple of the firm’s assets, raise the number of oil majors with whom the firm has partnered to four, following previous farm-out deals with CNOOC, Exxon and Statoil.

Ebitkar and TBE Egypt (Bee)

Ebtikar, a non-banking financial services platform joint venture backed by Egyptian private equity fund manager BPE Partners and MMG Group for International Industry and Trade (MTI), has acquired a 60% stake in TBE Egypt for Payment Solutions and Services, (commonly known as Bee). The transaction, which is reportedly worth EGP156 million (or approximately $8.8 million), is structured as a mix of debt and equity. Bee provides its customers with the ability to pay their service providers including mobile operators and internet providers as well as other end users through a network of over 35,000 retailers in Egypt.

ENGIE and Fenix International

In the renewable energy sector, ENGIE has acquired Fenix International, a venture-backed renewable energy company with offices in East Africa and Silicon Valley. The deal makes Fenix the first solar home system provider to link with a major energy provider. The company, which employs 350 people, operates predominantly in Uganda and has recently expanded into the Zambian market.

People Move: Exotix

For our final item this week, Exotix has appointed former Morgan Stanley and FBN Capital banker Chiamaka Ezenwas as Head of Investment Banking in West Africa. Exotix has been expanding its investment banking reach in Africa, particularly in the energy, financial and consumer sectors. Recently, the bank was one of the three deal managers, who with JPMorgan and Morgan Stanley worked on Guaranty Trust Bank tender offer for its $400 million 2018 Eurobond.

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