Merger and Acquisition

Autochek Acquires Cheki Kenya and Uganda to Provide Seamless Access To Auto Financing Across East Africa

Published

3 years ago

September 6, 2021

Barely a year after Autochek successfully acquired Cheki Nigeria and Ghana as part of its launch in West Africa, the automotive technology company has now entered into an agreement with ROAM Africa (Ringier One Africa Media) to acquire Cheki Kenya and Cheki Uganda, amid plans to expand further into the African market. The deal will be finalised within the following weeks and will see Cheki Kenya and Uganda’s operations integrate with the wider Autochek operations.

Founded in 2010, Cheki Kenya has built a network of hundreds of dealers, more than 12,000 vehicles listed monthly and 700,000 monthly unique users on its platform with 80% plus year-on-year growth in the last two years. With credit penetration in Kenya at 27.5%, significantly higher than the West African market, which stands at 5%, East Africa’s growing market is positioned as a key auto financing hub, and Autochek is now strategically positioned to scale as it becomes a pan-African player.

According to the Founder and CEO Etop Ikpe, the expansion into the East African region is the next step needed to continue Autocheck’s mission to provide seamless access to auto financing across the continent. Building on Cheki’s 10 years of experience, Autochek is set to introduce additional technology solutions that will integrate the auto ecosystem as well as increase market adoption for auto loan financing. As part of the agreement, ROAM Africa will also transfer ownership and operational control to Autochek.

Speaking on the acquisition, Etop Ikpe said, “The acquisition of Cheki Kenya and Uganda is an important milestone for us, and we are excited to be working with ROAM Africa once again, building on their achievements over the past years. ROAM Africa has an unrivalled track record of operating and scaling some of Sub-Saharan Africa’s most innovative classified marketplaces, and we look forward to leveraging on this solid business foundation.”

“Autochek’s mandate is to accelerate the ability of African consumers to access better quality and affordable vehicles by providing access to financing, while also derisking the auto lending process for financial institutions. We are long-time admirers and collaborators of the Cheki brand; following today’s news, we intend to provide even more trust and transparency in East Africa’s automotive sector, leveraging the unique networks we are now joining together.”

Clemens Weitz, CEO of ROAM Africa, says, “Across the world, we see a new evolution of digital automotive platforms, requiring deep specialisation. Specifically in Africa, we believe that Autochek is the one player with the best team and expertise to truly create a game-changing consumer experience. Our Cheki team has built a unique, market-leading brand and a truly remarkable business. Most importantly, I want to thank everyone in the team who contributed to this success. Now we are excited to see that taken to the next level. Whilst this is good news for everyone directly involved, the ultimate benefactor will be African car buyers and sellers.”

“For ROAM Africa, this deal is more than a perfect transaction: It unleashes even more focus on the strategic playbook for our core businesses. We have a clear strategy that will further strengthen our leading marketplaces and invest in innovative product solutions. The opportunity is now bigger than ever since the pandemic has vastly accelerated digitisation across the continent. In the last two years, our businesses recorded unprecedented growth. Thus, our commitment to connect Africans to opportunities remains strong.”

Launched in 2020 and backed by notable investors such as TLcom Capital and 4DX Ventures, Autochek combines technology underpinned by data analytics to deepen auto finance penetration across the continent. With a presence in Nigeria and Ghana, the company’s 360-degree automotive solution also provides a strong network of after-sales services that preserve and eases vehicle ownership experience across Africa.

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Merger and Acquisition

Nigerian Exchange Group Plc Acquires 5% Stake in Ethiopian Securities Exchange

Published

2 weeks ago

April 8, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

Nigerian Exchange Group Plc (NGX) has announced the acquisition of a 5% stake in the Ethiopian Securities Exchange (ESX).

The investment marks a significant milestone for NGX as it seeks to bolster its capital-market activities in East Africa and beyond.

The Lagos-based NGX, formerly known as the Nigerian Stock Exchange, revealed that it participated in a capital-raising exercise alongside institutional investors such as FSD Africa and Trade and Development Bank Group.

While the exact amount of NGX’s investment remains undisclosed, the company indicated that the percentage shareholding could potentially increase to 10% pending approval by NGX’s board.

NGX’s decision to invest in ESX aligns with its broader strategic objectives of facilitating cross-border investment flows, enhancing liquidity, and promoting economic development across the continent.

Temi Popoola, Chief Executive Officer of NGX, emphasized the significance of strategic partnerships and investments in driving growth and fostering collaboration within the African capital markets landscape.

The move comes as NGX transitions from a mutual company owned by stockbrokers to an organization held by shareholders. In 2021, NGX listed its shares on the NGX All Share Index, a move aimed at enhancing access to funding and expanding its capital-market operations both domestically and internationally.

Commenting on the investment in ESX, NGX highlighted its confidence in the potential of Ethiopia’s rapidly growing economy and capital market. By acquiring a stake in ESX, NGX seeks to leverage its expertise and resources to contribute to the development of Ethiopia’s financial sector while also tapping into new growth opportunities.

Following the capitalization of ESX, the Ethiopian government retains a 25% shareholding in the exchange. NGX’s investment not only strengthens its presence in East Africa but also underscores its commitment to fostering collaboration and partnerships across the African continent.

As part of the investment agreement, Temi Popoola, NGX’s CEO, is set to join ESX’s board, further solidifying the ties between the two exchanges.

This move is expected to facilitate greater collaboration and knowledge sharing, ultimately benefiting investors and market participants in both Nigeria and Ethiopia.

With NGX’s acquisition of a stake in ESX, the African capital markets landscape stands to witness increased integration and collaboration, paving the way for enhanced liquidity, deeper market penetration, and accelerated economic growth across the continent.

As NGX continues to expand its reach and influence, its investment in ESX marks a significant step forward in its journey towards becoming a leading player in the African financial ecosystem.

Merger and Acquisition

Canal+ Makes Bold $2.9 Billion Offer for MultiChoice, Eyes African Expansion

Published

2 weeks ago

April 8, 2024

Samed Olukoya

Canal+, a subsidiary of Vivendi SE, has formally tabled a $2.9 billion all-cash offer for MultiChoice Group Ltd., a major South African broadcaster.

This move comes as part of Canal+’s broader strategy to bolster its presence on the continent by leveraging MultiChoice’s extensive reach and resources.

The offer, which values MultiChoice’s shares at 125 rand ($6.7) apiece, represents a significant milestone in Canal+’s pursuit of expansion opportunities in Africa.

MultiChoice, in a filing jointly made with Canal+, confirmed the offer, which will now be subject to review by a newly constituted independent board of MultiChoice.

This bid represents Canal+’s commitment to navigate the complexities of South Africa’s regulatory environment, particularly concerning foreign media ownership restrictions.

Reports suggest that discussions are underway involving South African billionaire Patrice Motsepe, indicating potential collaboration to facilitate the deal.

Canal+ has expressed its intent to not only acquire existing MultiChoice shares but also reserve the right to purchase additional shares in the market. If acquired at prices exceeding the initial offer, Canal+ has committed to adjusting the bid price accordingly.

The French media conglomerate’s interest in MultiChoice dates back to 2020 when it began acquiring shares, ultimately surpassing the 35% ownership threshold this year, thereby triggering a mandatory takeover offer.

Vivendi has identified Africa as a key growth market, given its burgeoning population and economic potential. The proposed acquisition of MultiChoice aligns with Vivendi’s broader strategy to capitalize on high-growth regions.

MultiChoice, founded in South Africa in 1985 and subsequently expanded across the continent, has emerged as a prominent player in the African media landscape. Its spin-off from Naspers Ltd. in 2019 paved the way for independent operations and strategic partnerships.

The potential merger of Canal+ operations with MultiChoice could create a media powerhouse boasting nearly 50 million subscribers across the continent.

This consolidation could facilitate increased investments in local content production and sports broadcasting, catering to diverse audiences and enhancing cultural representation.

While the offer awaits deliberation by MultiChoice’s board, industry analysts anticipate robust discussions considering the significant implications for both companies and the broader African media industry. If successful, Canal+’s bid for MultiChoice could reshape the African media landscape, ushering in a new era of competition and innovation in the sector.

Merger and Acquisition

Access Bank Plc to Acquire National Bank of Kenya Limited in Landmark Deal

Published

1 month ago

March 20, 2024

Samed Olukoya

Access Bank PLC, a leading financial institution based in Nigeria, has unveiled plans to acquire National Bank of Kenya Limited (NBK) in a landmark deal.

The acquisition announced by Access Holdings Plc, the flagship subsidiary of Access Bank, signifies a significant move in the bank’s African expansion strategy.

Under the binding agreement, Access Bank will acquire the entire issued share capital of NBK from Kenyan-based KCB Group Plc (KCB), which also serves as the holding company of KCB Bank Ltd, Kenya’s largest commercial bank.

This strategic transaction is aimed at repositioning Access Bank as a prominent player in the Kenyan market and establishing it as a regional hub for the East African bloc.

The deal with NBK, known for its strong presence and substantial balance sheet exceeding US$1.1 billion, presents an enticing opportunity for Access Bank to expand its footprint in the East African market.

The completion of the transaction is subject to regulatory approvals from the Central Bank of Nigeria and the Central Bank of Kenya.

Upon finalization, NBK will be integrated with Access Bank Kenya Plc to form an enlarged franchise, advancing Access Bank’s strategic objectives for the Kenyan and East African markets.

Commenting on the Transaction, Ms. Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc said: “This proposed acquisition marks a significant step in the execution of our five-year strategic plan aimed at positioning the Bank as Africa’s Gateway to the World. The deal with NBK, a historically strong and well-known bank in Kenya with a balance sheet in excess of US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market. We remain confident that our investments towards diversifying and strengthening the Bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups.”