Elephant Group Limited has announced that it has inked a deal with AfricInvest for an equity investment in the company. Pursuant to the investment, AfricInvest Fund III will acquire a minority equity interest in Elephant Group via an issue of new shares.
The funds raised will be used to boost Elephant Group’s market share in agricultural commodities trading and to deepen penetration of agricultural commodities exports across selected markets in Africa. The Group will also continue to strengthen its backward integration initiatives in the rice, crude palm oil and fertiliser value chain.
Standard Chartered Bank acted as sole financial advisor to Elephant Group on the transaction.
Yemisi Deji-Bejide, head, mergers and acquisitions, West Africa, said “Standard Chartered is delighted to have worked with Elephant Group in achieving its strategic objectives and remains committed to assisting businesses in Africa attract growth capital.”
Tunji Owoeye, founder/group managing director of Elephant Group, said: “We are excited to partner with an Africa-focused investor with experience in the agricultural sector.
“The investment will enable the company to benefit further from government’s drive to promote agricultural productivity in Nigeria. The investment will also allow Elephant Group to transform from an indigenous agricultural commodities company in Nigeria to a vertically integrated pan-African player.
“This transaction will be the first ever private equity investment in the Nigerian agricultural commodities sector, and we view it a strong vote of confidence in the company.”
Abiola Ojo-Osagie, senior partner/managing director of AfricInvest in Nigeria, said: “We have identified a company led by entrepreneurs and a management team with a good knowledge of the domestic market. Through our partnership with the Elephant Group, AfricInvest is taking advantage of an opportunity to capitalise on Nigeria’s agricultural transformation agenda to build an enduring institution with a clear potential for growth and regional expansion.”
The transaction has successfully closed.
Founded in 1994, Elephant Group is the largest and fastest growing indigenous afro commodities company in Nigeria, where it imports, exports, markets and distributes rice, fertiliser and other afro commodities. The company is currently ranked four in rice and fertiliser marketing with market share of 8 percent and 10 percent, respectively. Elephant Group owns extensive distribution and logistics infrastructure in Nigeria and is a critical link in the supply of main staple foods in Africa’s largest and fastest growing consumer market. The Company also has presence in Ghana, Cameron, Senegal, Niger and Cote de voiur.
Over the last three years, Elephant Group has been focused on executing its backward integration strategy. Elephant Group is also a key player in the Growth Enhancement Support Scheme in Nigeria supplying fertiliser in 36 states of Nigeria, aligning with the renewed focus by many African governments on agriculture towards ensuring food security.
AfricInvest was founded in 1994, and is today among the leading private equity firms in North and sub-Saharan Africa with around $1 billion of assets under management across 13 PE funds and sponsored by prestigious Dais, private and institutional investors. AfricInvest relies on a team of 50 highly skilled investment professionals with over 130 years of cumulative PE experience, operating out of six offices in Tunes, Cashing, Algebra, Logos, Abide and Nearby.
AfricInvest Group is the co-founder of the African Venture Capital Association and the Emerging Markets Private Equity Association and member of the Euro med Capital Forum.
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