- Irish Musician Acquires Nigerian Firm for $80m
A private equity firm with interest in agriculture and technology, 8 Miles, on Tuesday acquired minority stakes worth about $80m in the Nigerian biscuit company, Beloxxi Industries Limited.
Irish pop star, Sir Bob Geldof, is the founder of 8 Miles.
The company also bought a minority stake in Blue Skies, an ethical fruit business that looks to expand into Nigeria and neighbouring West African countries.
Blue Skies, which operates in Ghana, Egypt and South Africa, did not disclose the financial details of the transaction.
However, its Chairman and Founder, Anthony Pile, said in a statement that Blue Skies and 8 Miles shared the vision “for improving the lives of people, protecting the environment and making enough money at source to advance our objective to supply best quality products to the people of the world.”
On the Beloxxi deal, the consortium of investors includes Nigeria-based African Capital Alliance and DEG, a subsidiary of the German KfW Development Bank.
Geldof had in August 2016 shown interest in Nigeria’s snacks industry and had sought to invest in Beloxxi, makers of Beloxxi cream cracker biscuits, towards boosting Africa’s biggest economy.
He had said that growth in the snacks market of large cities, such as Lagos, had been strong in recent years, “but the investment comes as the country struggles through the worst economic crisis in decades, driven by low oil prices and worsened by a failing government response that has included capital controls and import restrictions.”
Inflation had soared to more than 16 per cent at the end of 2016 and companies, including Beloxxi, along with multinational giants such as Unilever, had been forced to increase their prices, hitting consumers at a difficult time.
The President and Chief Executive Officer, Beloxxi, Mr. Obi Ezeude, said that before the $80m lifeline, the company reduced its dependence on imported raw materials and was striving to keep the prices of its biscuits affordable for the poorest Nigerian consumers.
Given the market challenges, he said that Beloxxi had been forced to increase the price of its smallest-sized product, a three-biscuit package of 21 grams, to N15.
Ezeude added, “With this equity investment, we will expand our current operations from five production lines to about 10 production lines. That will increase our capacity from 40,000 metric tonnes to 100,000 metric tonnes of Beloxxi cream crackers per year.”
“This is a landmark transaction that demonstrates the capacity for growth in the manufacturing sector in Nigeria. The investment will further increase the capacity of Beloxxi Industries and enable it to explore the export market, accessing the much needed foreign exchange whilst maximising the potential for growth in Nigeria.”
Global Deal Activity Down by 4.5% in October 2020
A total of 6,304 deals were announced globally during October 2020, which is a decrease of 4.5% over the 6,598 deals announced during September, according to GlobalData, a leading data, and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during October remained below the monthly average of Q3 2020.
Aurojyoti Bose, the Lead Analyst at GlobalData, comments: “After demonstrating growth for four consecutive months, the deal volume shrank in October. The decline in deal activity could be attributed to inconsistencies across different regions. The APAC region remained a weak spot, while deal activity remained mostly flat in North America, and the Middle East and Africa (MEA) region witnessed growth in deal activity.”
North America attracted the highest number of investments, followed by APAC, Europe, the MEA, and South, and Central America.
The uncertain global economic landscape lowered the deal volume in October for major markets such as the US, Germany, Australia, France, India, and China compared to the previous month. On the contrary, the UK, Japan, South Korea, and Canada saw growth of 15.6%,14.9%, 3.8%, and 2.2%, respectively, in October as compared to September’s deal volume.
Bose continued: “Most of the deal types witnessed a decline in volume during October compared to the previous month. Private equity, equity offerings, venture financing, debt offerings, and partnership deals volume decreased by a respective 2.4%, 9.1%, 9.8%, 14.6%, and 24.6% – while the deal volume for mergers and acquisitions (M&A) increased by 7.2%.”
Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business
Japaul Gold & Ventures Plc (Japaul), formerly known as Japaul Oil and Maritime Services Plc, announced it has gotten approval in principle from H&H Mines Limited to invest in or acquire shares in the company once it concluded its fundraising exercise.
According to a statement released through the Nigerian Stock Exchange (NSE), H&H Mines Limited has several licenses, which include two major Mining Leases for 25 years renewable.
The statement noted that extensive exploration has been done on the Mining properties and the last lap of the exploration works is core drilling. This, it said will allow Japaul knows the measured Minerals Reserve contained in the Mine, which it claimed contain Gold, Silver, Lead, Zinc, etc.
Japaul further explained that the need to get the drilling done was what led H&H Mining to engage the services of Xiang Hui International Mining Company Nigeria.
“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.
The drilling is expected to be concluded in the next 12 months and within this time, Japaul is expected to have concluded the Fund Raising and formalise her involvement in the Mining.
The company added that Canadian reports revealed that there are huge gold, silver, lead, etc deposits, but it is drilling that will show the actual reserve.
Africa Investment Forum (AIF) Rescheduled to Hold in 2021 – AfDB
Investment Forum to Now Hold in 2021 in a Bid to Curb Possible Second Wave of COVID-19
The Africa Investment Forum scheduled to hold in November 2020 in Johannesburg, South Africa has been rescheduled to hold in2021 as a result of the ongoing global health pandemic.
This announcement was made in a statement by AfDB on Wednesday. The African Development Bank (AfDB) and the Africa Investment Forum founding partners agreed to the postponement of the annual three-day investment market place.
Considering the negative effect of Covid-19 on the global economy, agreement by the two bodies was made after a careful assessment of the impact of COVID-19 on global travels, investments, observing the social distancing rules and curbing the likely possible risk of a second wave.
In the statement, the bank stated that through the forum innovative digital platforms, it would track investments, source for new deals, progress on financial closure of transactions and other existing deals.
“At the 2019 Africa Investment Forum, 57 deals valued at $67.7bn were tabled for discussions. Fifty-two deals worth $40.1bn secured investment interest.
“In July this year, the AIF Founding partners pledged to strengthen strategic partnership engagement and commitments for Africa Investment Forum Market Days 2021, to help ‘reboot investments in Africa.’ They underscored the need to boost local manufacturing while leveraging the continent’s vast resources to unlock investment.”
In the statement, Africa Investment Forum objectives are achieved through the forum’s four pillars; Closing, Connecting, Engaging and Investment Tracking.
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