Top deals making headlines this week
In focus this week: TymeBank, Naspers, Old Mutual, Nepi Rockcastle and more.
Naspers's PayU agreed to buy Turkish digital payments company Iyzico for $165 million (R2.4 billion) in its biggest fintech acquisition so far.
Naspers, Africa’s largest technology company by market value, described PayU as “one of the most hotly tipped fintech start-ups in” Turkey. PayU is focused on faster growing markets such as Russia, India and African countries where online payments are in their infancy.
The deal will expand the Dutch unit’s exposure to Turkey’s e-commerce market, which is growing at more than 10 percent a year, the company said in a statement on Tuesday. Read more here.
Patrice Motsepe’s African Rainbow Capital (ARC) and Ethos Private Equity have jointly announced an investment of R200 million by the Ethos Artificial Intelligence (AI) Fund into new digital bank TymeBank.
The investment by the Ethos AI Fund in TymeBank will result in it being an eight percent shareholder in the South Africa-based bank. The current remaining shareholders in TymeBank include ARC, the founders and executive management of TymeBank, and a staff trust.
In a separate transaction, ARC will invest R100 million into Ethos AI Fund. ARC said that TymeBank will now embark on the next phase of capital raising to facilitate the growth of the bank. Read more here.
Old Mutual Private Equity announced that its investing arm, Old Mutual Alternative Investments, had concluded the acquisition of a majority interest in local footwear retailer Footgear.
Old Mutual Private Equity (OMPE) is one of the largest private equity entities in the country, with R8 billion in investments from 30 transactions and returns in excess of R15 billion since 2004. Footgear has been in footwear retail in South Africa for 18 years, stocking prominent name brands including Adidas, Nike, Converse and Puma.
Footgear CEO Neil Stephens said the deal was an opportunity for Footgear to grow its reputation as a branded footwear retailer of choice in South Africa. "Quality, service and expertise are deep-rooted in the Footgear culture and we are delighted that this has enabled our growth and our brand's adoption by suppliers and customers. We look forward to the next stage of growth, supported through a partnership with a market leading private equity firm in OMPE,” Neil said in a statement.
The value of the deal was not disclosed. The deal is pending approval from the Competition Commission.
Online travel platform Travelstart has agreed to acquire 100 percent of the Club Travel Group, a deal that is set to continue the former’s growth trajectory in the African continent. The value of the deal was not disclosed by both parties.
The acquisition is set to boost Travelstart’s offering by adding Club Travel’s corporate and franchise divisions, creating a full-service African travel group. The closing of the deal is subject to the approval of the Competition Commission. Read more here.
Real estate group Nepi Rockcastle has become the latest company to agree for its shares to be traded on A2X Exchange in South Africa.
A2X said on Monday that Nepi Rockcastle has been approved for a secondary listing on its trading platform and its shares will be available for trade on A2X from June 18, 2019. NEPI Rockcastle is a FTSE JSE Top 40 constituent with a market capitilisation of over R72 billion.
NEPI will retain its listings on the JSE and Euronext Amsterdam and its issued share capital will be unaffected by its listing on A2X. Read more here.
Siemens Digital Industries Software has signed an agreement to acquire assets of ESTEQ, a distributor of product lifecycle management, product design and simulation, and manufacturing operations software and services.
Siemens Digital Industries Software did not disclose the terms of the deal – the price and level of shareholding.
“Through the acquisition of ESTEQ, Siemens Digital Industries Software will now have a direct presence in the South Africa market which will enable Siemens to expand and enhance how we support and service our customers across the region,” said Edwin Severijn, the Senior Vice President of Siemens Digital Industries Software for Europe Middle East and Africa.
Read more here.
Broll Property Group
Real estate services companies Broll Property Group and Cushman & Wakefield have entered into an exclusive affiliate arrangement, which is set to provide their clients with an integrated platform covering the entire sub-Saharan Africa region.
According to a statement released on Thursday, the exclusive affiliate agreement represents a partnership between Broll’s Occupier Services business and Cushman & Wakefield's global reach. This will result in the formation of a new and rebranded entity called Cushman & Wakefield Broll.
The partnership will allow for the optimisation of Broll’s expansive knowledge of African markets with the expertise of a global player like Cushman & Wakefield. Read more here.
South African investment holding company Reatile Group has agreed to acquire a 20 percent interest in the Juwi Renewable Energies South African unit of German renewable energy company Juwi.
Reatile did not specify the amount it will invest in the transaction.
The move will enable Reatile to expand its investment in renewables in South Africa, where Juwi is building four solar power plants with a combined capacity of 250 MW under the Renewable Energy Independent Power Producer Program (REIPPP). “The Reatile Group is interested in investing in megawatts throughout the continent,” said chairman Simphiwe Mehlomakulu.
“We want to make sure that for every rand we make in fossil fuel we make the same rand in renewables – so that when I die and leave this world, we have a neutral carbon footprint.”
Anglo African Agriculture
Anglo African Agriculture has announced that it has agreed to acquire Kenya-based port and marine logistics group Comarco for $30 million.
The group is engaged in the port and marine logistics business in the East Africa region and is based in Mombasa.
The $30 million transaction will be by way of a reverse takeover. Payment will be satisfied by the issue of new ordinary shares to the sellers of Comarco Group at 0.5p with VSA Capital conducting an equity fundraising of approximately $15 million to fund working capital and the growth of the enlarged group.
It is also anticipated that there will be a vendor placing of approximately $6 million to provide funds for the sellers to settle existing debts and related costs including capital gains tax. Subject to completion of the acquisition, the company intends to change its name to Agulhas Group Africa plc.
Creadev, the private equity firm of French family Mulliez, has acquired a stake in Kenya's mobile-based food delivery firm Twiga Foods in a $5 million deal. The cash injection will go towards helping the firm upscale its support to small- scale farmers in the country.
“Having Creadev join our shareholding is a huge boost to our mission to deliver safe, affordable high-quality food to urban consumers, while providing reliable markets for farmers,” Twiga Foods said.
Creadev is a global long-term investment firm which has so far invested about Sh1214 billion (about $12 billion) into companies at different stages, from venture capital to growth equity and buyout. Twiga was established in 2014 and is among Africa’s most funded startups. It runs a cashless platform through which vendors can order and pay for vegetables and fresh food from farmers, resulting in a more efficient supply chain by elimination multiple layers of middlemen.