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. Ninety One exits portion of its PE investment in FMCG company
Alongside Rand Merchant Bank Ventures (RMBV) and other shareholders, Ninety One, via its Africa Private Equity Fund 2 (91APEF2), has sold a portion of its equity investment in Kamoso Africa to the Botswana Development Corporation (BDC).
Founded in 2015, Kamoso has established itself as one of Botswana’s leading diversified fast-moving consumer goods (FMCG) platforms. Ninety One and RMBV acquired a controlling stake in Kamoso in 2017, in what was believed to be Botswana’s largest ever private equity investment.
In this transaction, BDC acquired a 24% shareholding in Kamoso and has joined the board.
2. Novastar Ventures announces final close of second Africa fund
The Novastar Ventures Africa Fund II (NVAF II), managed by Nairobi and Lagos based Novastar Ventures, has reached a final close of $108 million (a 35% uplift on Novastar’s maiden fund).
NVAF II is backing the next generation of entrepreneurs in Africa addressing proven demand for basic goods and services with innovative business models that widen access, improve quality, and lower cost for the mass market in these emerging economies.
NVAF II received backing from several European development finance institutions (including the CDC Group, European Investment Bank, Dutch Good Growth Fund and FMO) as well as private asset managers such as AXA Impact Fund.
3. ECP portfolio company acquires Zoona Malawi’s operational assets
Private equity firm Emerging Capital Partners (ECP) has announced that its portfolio company Mukuru, an international money operator and remittance company, has acquired Zoona Malawi’s operational assets along with the technology systems that support its Malawian operations. Zoona, which has worked with Mukuru for four years as a partner, is an Africa-based fintech that enables entrepreneurs to bring safe and reliable financial services to communities in Malawi.
The acquisition will extend Mukuru’s African footprint into the urban centres and rurally across Malawi. Following the acquisition, Zoona Malawi’s agents will operate as Mukuru agents benefiting from a wider product range to offer customers.
4. Metrofile take-private PE deal postponed due to Covid-19
Africa Private Equity News last year reported that US-based private equity firm Housatonic Partners has submitted an offer to acquire South African company Metrofile. Johannesburg Stock Exchange-listed Metrofile is a records and information management specialist.
However, due to the Covid-19 crisis, the transaction has now been postponed. Metrofile recently released the following statement:
"The Housatonic Consortium has informed the board of Metrofile that it remains committed to acquiring Metrofile, but realistically neither it nor its bankers can proceed until the Covid-19 crisis and lockdown in South Africa are over and international travel restrictions have been lifted. The Housatonic Consortium will need to see three months of normal trading and revised projections and debt levels before a firm offer package and funding can be finalised."
5. Convergence Partners platform acquires Vodacom Business Africa’s operations in four regions
Convergence Partners announced that its pan-African digital service provider platform, inq. Holdings Limited (formerly Synergy Communications), has completed the 100% acquisition of Vodacom Business Africa’s operations in Nigeria, Zambia and Côte d'Ivoire with a further planned acquisition in Cameroon pending regulatory approvals.
This transaction grows inq.’s regional footprint as an enterprise solutions provider to 13 cities in seven countries across Africa, including its existing operations in Botswana, Malawi and Mozambique. Under the inq. banner the company will embark on the next phase of building a unified pan-African cloud and digital service provider, bringing to market a suite of next-generation technology solutions in the fields of EDGE, artificial intelligence, NFV and cloud.
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