The 5 most popular stories on Africa Private Equity News this week
Here are summaries of the five most widely read stories this week on Africa Private Equity News.
1. LeapFrog and Tana Africa Capital in Nigerian deal
LeapFrog Investments and Tana Africa Capital announced a strategic investment in Interswitch, one of Africa’s leading technology-driven companies focused on the digitisation of payments. The investment will assist in supporting the company’s drive to advance the payment ecosystem across the continent. A portion of the investment has been acquired from existing shareholders, with Ignite Holdco Limited, made up of Helios Investment Partners and TA Associates, remaining the largest shareholder in the business following the transaction.
Alongside existing investors, LeapFrog and Tana will work with management to continue to drive Interswitch’s pan-African strategy, as it looks to access new customers across the continent, innovate with new products and services, and support its financial inclusion strategy.
2. Old Mutual Private Equity exits Consol Holdings
Old Mutual Private Equity (OMPE), a division of Old Mutual Alternative Investments, announced the sale of Consol Holdings to Luxembourg-based Ardagh Group, one of the largest glass producers in the world, for an equity value of approximately ZAR10 billion (about $617.2 million), and an enterprise value of approximately ZAR17 billion (about $1 billion). All conditions precedent have now been met and the deal closed at the end of April 2022.
OMPE has been an active shareholder in Consol since 2007, when it delisted the business as part of a private equity consortium including Brait, Sanlam and management. Since then, Consol has grown significantly over OMPE’s investment tenure; glass production capacity almost doubled from approximately 600 kt to circa 1,150 kt, turnover grew from ZAR2.5 billion to more than ZAR10 billion and the business now employs almost 3,000 staff members.
Consol is the leading producer of glass packaging on the African continent and currently operates seven glass production facilities, boasting in excess of 15 furnaces. It serves a range of leading international, regional, and domestic customers, principally in the beer, wine, spirits, food, and non-alcoholic beverage sectors.
3. SPE Capital in Egypt deal, alongside Amethis and EBRD
SPE Capital, a private equity firm focused on Africa and the Middle East, announced the acquisition, by its private equity fund SPE AIF I, of GlobalCorp, a leading Egyptian non-banking financial services company, in a consortium with Amethis and the European Bank for Reconstruction and Development (EBRD).
Established in 2015, GlobalCorp is a leading Egyptian non-bank lender with a current focus on leasing and factoring solutions to corporates and small and midcap enterprises (SMEs). The company’s leased assets include production lines, equipment and machinery, vehicles, and commercial/industrial real-estate while the factoring product portfolio covers a range of short-term financing solutions.
SPE Capital and the consortium will be investing in GlobalCorp alongside founder, group CEO and MD, Hatem Samir and in partnership with its highly capable management team. The investment in GlobalCorp will include a primary capital investment to further scale the company’s portfolio and expand into new business segments. SPE Capital and the consortium will also partner with GlobalCorp’s management on scaling the company’s infrastructure and operations, investing in technology and advancing the company’s impact agenda, including the promotion of greater financial inclusion, financing to SME clients and green initiatives as well as promoting leading ESG and client protection standards within the NBFS industry.
4. Kenyan forestry company Komaza raises $10m funding
Komaza, a smallholder forestry platform, has raised $10 million from Mitsui & Co. and Sobrato Philanthropies.
The new funds will be used to scale field operations, support value chain expansion, and develop innovative tech infrastructures, reinforcing Komaza’s key initiatives set forth in the $28 million series B in July 2020 to accelerate climate impact through sustainable smallholder forestry.
5. Kuramo Capital commits to Uhuru Growth Fund I
Kuramo Capital Management, a sub-Saharan Africa focused investment management firm, announced its $10 million commitment to Uhuru Growth Fund I (UGF). UGF is a middle market private equity fund launched by Uhuru Investment Partners, investing in high growth companies in West Africa, including Nigeria, Ghana, Côte d’Ivoire and other Francophone markets. Through the $10 million commitment to Uhuru, Kuramo continues to support local first-time fund managers and drive catalytic investments in sub-Saharan Africa. This support includes opportunities for GPs and entrepreneurs to access institutional capital, as well as develop a global footprint and deep understanding of the region.
Kuramo is a private equity and multi-asset platform focused on investing in sub-Saharan Africa with about $500 million in asset under management. The firm is headquartered in New York, with offices in Lagos and Nairobi.
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