So far into the year 2019, the Nigeria private equity space has recorded investments worth N277.65 billion ($767 million) in deals sealed between January and February.
This is an improvement by 345 percent compared to N62.37 billion ($172 million) worth of deals closed during corresponding periods in 2018.
Private equity deals so far this year was dominated by a 100 percent stake in Chi ltd by Coca-Cola to a tune of $500 million in value, which accounted for about 65 percent of total private equity value so far in 2019.
The acquisition according to Coca-Cola is said to signal its optimism about Africa’s consumer opportunity and a commitment to its long-term investment and growth plan on the continent, where it has been present for more than 90 years.
Also the soon to be concretized merger between Access bank, a Nigeria Tier one deposit money bank (DMB) and Diamond Bank, a Tier two DMB came second on the private equity chart.
Deal between Access bank and Diamond Bank is said to worth $200 million accounting for about 26 percent of total deal so far. The deal is said to accelerate Access Bank’s strategy as a significant corporate and retail bank in Nigeria and a Pan-African financial service champion according to Herbert Wigwe, CEO of Access bank.
Meanwhile, acquisition of WAKANOW by Carlye group in the Aviation sector was valued at $40 million which accounted for 5 percent of total investment value.
The deal was announced in December 2018 by global alternative asset manager The Carlyle Group assenting to invest $40 million in Wakanow.com Limited (Wakanow), an online travel agency focused on West and East Africa, with principal operations in Nigeria. Equity came from Carlyle’s Sub-Saharan Africa fund.
According to Mayowa Ayodele, one of Wakanow’s lead investors “as we continue to grow and expand in Africa and beyond. Carlyle’s global footprint and scale as well as its extensive experience and network in the online travel sector will help us to further develop our offerings and broaden our customer base.”
The consumer goods industry also witnessed private investment between Vectis & AGL and Leventis over a deal worth $12 million accounting for about 2 percent of total private equity deal value in 2019 so far.
Meanwhile, CDC Group plc, a development finance institution owned by the UK government invested $15 million in a Nigerian-based private firm, Cardinal Stone Capital Advisors Growth Fund (CCAGF), to support high-growth SMEs in Nigeria.
CDC has worked closely with the CardinalStone Capital Advisors team for two and a half years and has played a key role in the formation of the fund, the UK-based financial institution said in a statement on its website.
“As a pioneering investor in African private equity we are delighted to be supporting CardinalStone’s first fund that will bring investment and expertise to the local entrepreneurs and high growth SMEs that are vital to Nigeria’s long-term economic growth and job creation. We have worked with CardinalStone from the beginning, helping them build a team and raise other investment”, Clarisa de Franco, CDC’s Managing Director said.