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Weekly Wrap, November 10th, 2014; Actis, Vantage and more make private capital news

The week in brief…November 10th, 2014

There were a number of private capital deals in Africa last week.  The deal that took most of the limelight last week was Actis‘ acquisition of a significant minority stake in Tekkie Town for $65 million.  With 265 stores in South Africa, 10 in Namibia and 1 in Lesotho, the fresh capital gives the shoe retailer the funds to expand more broadly in southern Africa and possibly West and East Africa too.  Terms of the deal have not been reported so far.  Meanwhile, in its eleventh transaction in its second fund, and its third outside of South Africa, Vantage Mezzanine has agreed to provide $30 million in expansion capital to Ghana’s Surfline Communications. The capital will be used to expand the company’s 4G LTE network as well as boost its product distribution and marketing activities.

Egypt was a hot bed of deal activity last week.  In what must be the penultimate stage of a deal we’ve been following in the last couple of weeks, Abraaj formally offered to buy 100% of Egyptian cake and biscuit manufacturer Bisco Misr for approximately $118 million.  The per share offer price is lower than the closing price the day before the bid.  If you remember, in the prior week, shareholders owning 56% of the shares had offered to sell, dependent on submission of a formal offer.  It’ll be interesting to see what happens next.  Either way, to do the deal, Abraaj will require a minimum stake of 51%. In two other potential deals, Pioneers Holdings has made an offer to acquire 60.2% of Arab Dairy for approximately $28 million, and TVM Capital Healthcare Partners has made an undisclosed offer to acquire stakes in Ameco Medical Industries.

Two recent industry reports feature in the sectors and strategies section of this week’s digest.  Firstly, the GSMA’s Mobile Outlook report for sub-saharan Africa. Business Day has an interesting piece on some of the data points from the report and how the technology will continue to improve country GDPs, employment and the lives of millions of people in Africa.  And fresh from presentation at one of their conferences in early October, KPMG Africa’s report on the outlook for power in sub-saharan Africa became availabe for download from their website last week.  Links to both can be found in the abstracts below.

And finally, a piece in Reuters on how, despite the alarming epidemic and security-threat headlines emanating from Africa in the last few months, most investors are looking past them to focus on the factors that gave rise to the ‘Africa Rising’ narrative and continuing to pursue investment opportunities on the continent.  A reassuring note to end this week’s overview on.

You can review these and other stories by clicking through to this week’s complete issue of Africa Capital Digest.

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