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Merger and Acquisition

MainOne to be Acquired by America’s Equinix in a $320m Deal

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MainOne - Investors King

Nigerian and West African data centre and cable service provider, MainOne is close to being acquired by an American internet company in a deal that is touted to have a value of $320 million.

In a release by Equinix, the $320 million deal is expected to be sealed and signed in the first quarter of 2022, pending the satisfaction of conventional closing conditions, including the required regulatory approvals.

A Public Relations personnel from MainOne confirmed the deal, but stated that he had access to limited information. He was however convinced that the deal would be a total buyout.

MainOne was founded in 2010 by Funke Opeke, a Nigerian. The company has over 1,000 kilometres of reliable terrestrial fibre networks across the southern region of the country, while also owning and operating a subsea network from Nigeria to Portugal (in Europe).

The company also has digital infrastructure assets including three data centres (which are operational) across the western area of Africa. It also has another facility under construction, which is set for a launch in Q1 2022. These facilities have helped the company enable connectivity for Nigeria’s business community.

Equinix, on this background believes that MainOne is one of the most thrilling tech businesses to come out of Africa. Charles Meyers, the CEO and President of Equinix which has its headquarters in California, stated that the acquisition of MainOne would be the first step in the company’s strategy to become a leading African carrier neutral digital infrastructure company in the long term.

Meyers said that MainOne’s leading position in interconnection and its experienced management team are critical assets in Equinix’s bid to become the leading neutral provider of digital infrastructure across Africa.

Meyers noted that the growth in data consumption in Africa is one of the fastest in the whole world, and MainOne’s infrastructure, customer relationships and operating capability will extend Equinix’s reach and boost opportunities for customers based in Africa and other parts of the world.

It was agreed in the deal that all members of the MainOne management team, including the CEO will continue in their respective roles. Equinix will also take on MainOne’s about 500 employees, but it is unclear what will happen to them under the new dispensation.

Merger and Acquisition

Exxon Mobil’s Sale to Seplat Progresses After NNPC Drops Legal Challenge

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exxonmobil

The Nigerian National Petroleum Corporation (NNPC) has withdrawn its legal challenge against Exxon Mobil Corp.’s sale of its oil and gas assets to Seplat Energy Plc.

This decision eliminates a major obstacle that had stalled the completion of the $1.3 billion deal.

The NNPC submitted an application to the high court in Abuja to discontinue the case, as confirmed by its legal firm, Afe Babalola, in an email on Thursday.

This move follows an agreement reached last month between NNPC and Exxon Mobil to finalize the transaction under undisclosed terms.

However, court documents reviewed by Bloomberg reveal that NNPC retains the right to resume its legal challenge if the settlement terms are not honored.

The sale, initially signed in February 2022, still requires approvals from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which has set an August deadline, and from Nigerian President Bola Tinubu.

The NNPC’s withdrawal significantly advances the deal but does not mark its final hurdle.

The addition of Exxon Mobil’s blocks will significantly enhance Seplat’s portfolio, almost quadrupling its output to over 130,000 barrels per day.

This acquisition is set to bolster Seplat’s status as one of the leading suppliers of domestic gas to Nigerian power plants, fortifying its influence in the region.

In a parallel development, Shell Plc’s divestment of its Nigerian onshore oil business to a consortium of local firms, valued at over $1.3 billion, also awaits regulatory approval after being announced in January.

Both deals highlight the ongoing restructuring and consolidation within Nigeria’s oil and gas industry, aimed at increasing efficiency and local participation.

As Nigeria navigates these substantial industry shifts, the successful completion of the Exxon Mobil-Seplat deal will be a critical indicator of the nation’s ability to manage large-scale energy transactions.

It will also set a precedent for future agreements and regulatory processes in the country’s vital oil and gas sector.

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Merger and Acquisition

Access Bank Plc Expands Footprint in Tanzania with ABCT Acquisition

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Access Bank Plc has taken a significant stride in expanding its presence in East Africa through the acquisition of a majority equity stake in African Banking Corporation of Tanzania (ABCT) Limited, a subsidiary of Atlas Mara Limited.

The acquisition, which was completed recently, underscores Access Bank’s ambition to become one of the leading financial institutions in Africa.

The transaction not only solidifies its position within the East African banking landscape but also aligns with its broader goal of enhancing intra-African trade and fostering economic development across the continent.

Commenting on the transaction, Roosevelt Ogbonna, Managing Director of the Bank, said: This strategic move represents a notable step towards setting a railroad in Tanzania for intra-African trade within the East African region, Africa and the rest of the world. It underscores our commitment to creating a robust East African banking network, driving positive change and innovation. We are excited about the opportunities this acquisition presents for our operations in Tanzania and are eager to leverage our
combined strengths to deliver exceptional financial solutions and experiences to our customers.

Commenting on the transaction, John Imani, Managing Director, African Banking Corporation (Tanzania) Limited, said: “The completion of our transaction with Access Bank Plc, not only underscores the strong confidence of Access Bank in our operations and the Tanzanian market but delivers new and exciting opportunities for our customers, employees, and stakeholders. The new entity is poised to enhance our service offerings, leveraging Access Bank’s extensive resources and expertise to deliver even greater value to our clients. We look forward to an exciting and prosperous future as part of the Access Bank family, driving economic growth and financial inclusion across Tanzania.”

Following the acquisition, Access Bank plans to merge ABCT with the consumer, private, and banking business of Standard Chartered Bank Tanzania, another entity it is acquiring.

This strategic integration aims to create Access Bank Tanzania, positioning it as a prominent player in the country’s banking sector.

The combined entity will offer a comprehensive range of banking products and services tailored to meet the evolving needs of Tanzanian businesses and individuals.

Access Bank’s expansion into Tanzania is expected to stimulate competition in the local banking industry, spur innovation, and deepen financial inclusion.

With a robust presence across multiple African markets, Access Bank continues to demonstrate its commitment to driving sustainable growth and fostering economic resilience across the continent.

As Access Bank Tanzania prepares to launch under its new structure, stakeholders are anticipating enhanced banking solutions and increased accessibility that will contribute to Tanzania’s economic prosperity in the years ahead.

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Merger and Acquisition

Tolaram Acquires 58.02% Stake in Guinness Nigeria from Diageo

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Guiness

Tolaram Group has acquired a 58.02% stake in Guinness Nigeria from Diageo Plc. for ₦81.60 per share, representing approximately a 60% premium over Guinness Nigeria’s closing price of ₦50 on Monday.

Announced on June 11, 2024, the acquisition underscores Tolaram’s commitment to expanding its footprint in Nigeria’s robust consumer market.

Diageo, the UK-based beverage giant, will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria, now under Tolaram’s majority control, through long-term agreements.

Under the terms of the deal, Tolaram will initiate a mandatory takeover offer in compliance with Nigerian Exchange regulations.

However, Guinness Nigeria will continue to be publicly listed, maintaining its presence on the Nigerian Stock Exchange.

A statement from Guinness Nigeria highlighted the terms of the agreement, confirming the continued production of the Guinness brand along with Diageo’s locally manufactured ready-to-drink and mainstream spirits under license and royalty agreements.

The transaction is slated for completion in 2025, pending necessary regulatory approvals.

Commenting on the acquisition, Sajen Aswani, Tolaram’s Chief Executive, said: “Our partnership with Diageo to jointly grow Guinness Nigeria underscores our commitment to build on our strong presence and heritage in Nigeria, cultivated over decades of dedication and unwavering confidence in the future of Africa. We take a long-term view on all our investments, and this partnership reflects our optimism on the exciting opportunities that lie ahead across the continent.”

Diageo CEO Debra Crew echoed Aswani’s sentiment “I’m excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favourite beer for nearly 75 years. Tolaram shares this passion for Guinness and for Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country.”

This strategic acquisition is expected to bolster Guinness Nigeria’s market position, leveraging Tolaram’s extensive experience in the consumer goods sector to drive growth and innovation.

The partnership aims to enhance the availability and appeal of Guinness and other Diageo products in Nigeria, contributing to the country’s economic development and consumer satisfaction.

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