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Merger and Acquisition

Sub Saharan Africa Mergers and Acquisition Transactions Totalled US$ 129.7 Billion in 2021

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Refinitiv today released the 2021 investment banking analysis for the Sub-Saharan African. According to the report, an estimated US$506.0 million worth of investment banking fees were generated in Sub-Saharan Africa during 2021, 8% less than in 2020 and the lowest annual fee total in the region since 2014.  While debt capital markets underwriting fees increased 128% to US$150.3 million, the highest full year total since our records began in 2000, fees from equity capital markets underwriting, M&A advisory and syndicated lending all declined from 2020. 

Equity fees declined 35% to US$56.9 million, while syndicated lending fees declined 17% to US$216.0 million.  Advisory fees earned in the region from completed M&A transactions reached US$82.9 million, down 38% year-on-year to the lowest annual total since 2003.  Fifty-five percent of all Sub-Saharan African fees were generated in South Africa during 2021, and 25% were earned from deals in the financial sector. Standard Chartered earned the most investment banking fees in the region during 2021, a total of US$37.7 million or a 7.5% share of the total fee pool.

MERGERS & ACQUISITIONS

The value of announced M&A transactions with any Sub-Saharan African involvement reached US$129.7 billion during 2021, more than four-times the value recorded during 2020 and the highest full-year total since our records began in 1980.  The high dollar-value was boosted by the Naspers/Prosus share swap in May, and Redefine Properties’ offer for the remaining shares in retail property company EPP, which together were worth a more than US$70 billion.  The number of deals increased 13% from 2020 to a four-year high of 853.

M&A involving a Sub-Saharan African target reached US$79.6 billion, again lifted by the share swap to an all-time record annual total, while the number of deals increased 21% over the previous year.  Inbound deals, involving an acquiror outside of Sub-Saharan Africa, increased 164% to US$20.1 billion, while outbound M&A reached an all-time high of US$42.3 billion.

High technology was the most targeted sector by value in Sub-Saharan Africa during 2021, while the materials sector saw the highest number of deals in the region.  South Africa was the most targeted nation, with US$63.7 billion in M&A announcements over the year, equivalent to 80% of total activity recorded in the region.

With advisory work on deals worth a combined U$52.1 billion, Morgan Stanley held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during 2021.

EQUITY CAPITAL MARKETS

Sub-Saharan African equity and equity-related issuance reached US$1.4 billion during 2021, down 43% compared to 2020 and the lowest annual total since 2005.  The number of issues declined 38%, again to a 16-year low.  Issuers in South Africa raised more in the equity capital markets than any other Sub-Saharan African nation during 2021, a total of US$979.6 million, followed Mauritian and Ugandan issuers.

Follow-on offerings raised US$1.3 billion in 2021 with Pepkor Holdings, Lighthouse Capital and financial services group FirstRand Ltd among those in the region raising new equity funds from follow-ons in 2021.  Just one initial public offering was recorded in the region during 2021, MTN Uganda raised U$163.0 million listing on the Uganda Securities Exchange in December. Investec and Goldman Sachs share first place in the Sub-Saharan African ECM underwriting league table during 2021, each with a 24% market share. 

DEBT CAPITAL MARKETS

Sub-Saharan African debt issuance totalled US$43.5 billion during 2021, up 125% from the value recorded during 2020 and the highest full-year total since our records began in 1980.  The number of new offerings brought to market increased 46% over 2020 to a four-year high of 73.  South Africa was the most active issuer nation during 2021, accounting for 26% of total bond proceeds, followed by Ivory Coast and Nigeria with 22% and 16%, respectively.  DCM activity from Government & Agencies accounted for 51% of issuance during full year 2021, while financial sector issuance accounted for 26%. Citi took the top spot in the Sub-Saharan African bond book runner ranking during 2021, with US$6.7 billion of related proceeds, or a 16% market share.

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Merger and Acquisition

Access Holdings Plc to Acquire Majority Stake in First Guarantee Pension Limited

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Herbert Wigwe - Investors King

Access Holdings Plc has agreed with First Guarantee Pension Limited to acquire a majority stake in the company in its drive to transform from a narrow banking business into a financial service company.

The leading financial institution stated in a press release obtained by Investors King on Thursday.

According to Access Bank, the transaction is in line with its strategy to evolve into a full-blown financial services company and gain relevant market share across Africa, global monetary centres and beyond banking verticals.

Speaking on the firm’s push to change the banking landscape, Dr. Herbert Wigwe, Group Chief Executive Officer, Access Corporation said “This transaction is a natural evolution for us. Over the last 20 years, we set our sights on and delivered ambitious plans to transform the African financial services landscape focusing on banking and have created the African leading Bank and largest bank by customer base.

“This large customer base both on the wholesale and retail segments makes the pension business a natural fit for the Corporation given its objective of ecosystem optimisation. We will leverage our well-established culture of strong corporate governance, risk management, cutting-edge technology, and digital capabilities to deliver high standards of professionalism in the management of pension assets to the benefit of our stakeholders.”

The firm added that the National Pension Commission and the Central Bank of Nigeria have given their no objection to the transaction.

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Merger and Acquisition

FBN Holdings to Acquire Access Pension Fund Custodian Limited

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UK Eke Group Managing Director FBNHoldings - Investors King

FBN Holdings Plc on Wednesday announced it entered into a definitive agreement with Access Bank Plc to acquire 100% Share Capital of Access Pension Fund Custodian Limited held by Access Bank Plc.

The acquisition would be done through First Pension Custodian Limited, a subsidiary of FBNH, the bank disclosed this in a statement signed by Adewale L.O Arogundade, Ag. Company Secretary and obtained by Investors King.

According to FBN Holdings, the Central Bank of Nigeria and the National Pension Commission have given their no objection to the transaction, with completion subject to the receipt of all required regulatory approvals.

The statement reads, “FBN Holdings wishes to notify Nigerian Exchange Limited and investing public that First Pension Custodian Limited, a subsidiary of FBNH’s flagship subsidiary, First Bank of Nigeria Limited has entered into a definitive agreement with Access Bank Plc for the planned acquisition by First Pension of 100% Share capital of Access Pension Fund Custodian Limited held by Access Bank Plc.

 

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Merger and Acquisition

Sub Saharan Africa Mergers and Acquisition Transactions Totalled US$ 7 Billion in Q1 2022

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merger and acquisition

Refinitiv today released the first quarter 2022 investment banking analysis for the Sub-Saharan African. According to the report, an estimated US$97.3 million worth of investment banking fees were generated in Sub-Saharan Africa during the first quarter of 2022, down 9% from the same period in 2021 and the lowest first quarter total since 2014.

The value of announced M&A transactions with any Sub-Saharan African involvement reached US$7.0 billion during the first three months of 2022, 13% less than the value recorded during the same period in 2021 and a four-year low, despite an 11% increase in the number of deals. Sub-Saharan African equity and equity-related issuance totalled US$496.9 million during the first quarter of 2022, compared to just US$18.4 million during the same period last year. Sub-Saharan African debt issuance totalled US$9.4 billion during the first quarter of 2022, down 30% from the value recorded during the same period in 2021, although historically high with only 2018 and 2021 registering higher first quarter totals.

INVESTMENT BANKING FEES

Equity capital markets underwriting fees declined 1% to US$8.8 million, the lowest first quarter total in twelve years.  Debt capital markets fees declined 16% from last year’s record start to US$40.7 million, while syndicated lending fees declined 81% to US$6.3 million.  Advisory fees earned in the region from completed M&A transactions reached a three-year high of US$41.4 million, an increase of 163% compared to the first three months of 2021.  Seventy-nine percent of all Sub-Saharan African fees were generated in South Africa during the first quarter of 2022, and 33% were earned from deals in the High Technology sector. Goldman Sachs earned the most investment banking fees in the region during the first quarter of 2022, a total of US$11.4 million or an 11.7% share of the total fee pool.

MERGERS & ACQUISITIONS

Deals worth US$5.2 billion involved a Sub-Saharan African target, a 10% increase from the first quarter of 2021.  While domestic deals declined 17% from last year, inbound deals involving a non-Sub-Saharan African acquiror increased 44% to US$3.0 billion, the highest first quarter total in five years.  Meanwhile, Sub-Saharan African outbound M&A totalled US$776.0 million, less than half the value recorded during the same period last year and with a 15% decline in the number of deals. High technology was the most targeted sector by value in Sub-Saharan Africa during the first quarter of 2022, while the financial sector saw the highest number of deals in the region.  South Africa was the most targeted nation, with US$2.5 billion in M&A announcements, equivalent to 48% of total activity recorded in the region. With advisory work on deals worth a combined U$1.8 billion, Goldman Sachs held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during Q1 2022.

EQUITY CAPITAL MARKETS

All proceeds were raised by follow-on issuance with MTN Nigeria Communications and South African coal exporter Thungela Resources among those in the region raising new equity funds from follow-ons.  No convertible or initial public offerings were recorded in the region.  Issuers in Nigeria raised more in the equity capital markets than any other Sub-Saharan African nation during the first quarter of 2022, a total of US$277.1 million, while South African issuers raised a combined US$219.9 million. Morgan Stanley took first place in the Sub-Saharan African ECM underwriting league table during the first quarter of 2022 with a 23% market share, followed Java Capital with 13%.

DEBT CAPITAL MARKETS

The number of issues declined 43% from last year at this time.  South African was the most active issuer nation during the first quarter of 2022, accounting for 59% of total bond proceeds, followed by Nigeria (22%) and Ivory Coast (14%).  Issuers is the technology sector accounted for 56% of proceeds raised during the first three months of 2022, while government & agency issuers accounted for 27%. Citi took the top spot in the Sub-Saharan African bond bookrunner ranking during the first quarter of 2022, with US$1.7 billion of related proceeds, or an 18.1% market share.

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