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28 July 2016

Atta Africa Financial Update

Key commercial and political activity in Africa for private equity investors by DCE Partners, UK Private Equity advisors to Atta.

Executive summary: Global capital fuelling African property markets.

Property developers and private equity funds continue to pour investment into the continent, but with more focused strategies: over US$1.2 billion has been raised and allocated to real estate investment in Africa over the past year and there are expectations of this trend to continue.

The last year has seen Actis, RMB Westport, Novare, Phatisa and Growthpoint successfully raising capital from global funds such as GIC Singapore, Grosvenor, The IFC, CDC Group among other international funds.

The effects of the currency and liquidity issues have been sharply felt across the continent but most notably in the larger oil driven commodity exporting countries. This has resulted in a shift towards economic diversification and countries in the East African region providing more economic stability than others.

Fact: Elephants use their back musclses and skin to crush mosquitoes

South Africa to build a liquid-bulk terminal

 
  • South Africa has issued request for proposals to design, finance, build and operate a liquid-bulk terminal to handle petroleum products at Durban’s port
  • Bidders must be at least 51% owned by black citizens to qualify to participate in the 25-year concession

IFC is spending a total of US$22 million to buy a 4% stake in ADvTECH
 
  • ADvTECH is a South African private education provider
  • The investment is made up of two deals—1.6% was acquired in the market, whilst 2.5% of the stake will be in newly issued shares
  • The investment will support JSE-listed ADvTECH’s plans to expand into new African markets
  • The open-market share purchase is particularly notable since the IFC normally invests in publicly-listed through the issuance of new shares
  • The deal makes the IFC the fifth largest shareholder in AdvTECH behind Visio Capital, Coronation Fund Managers, Old Mutual and the Public Investment Corporation