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M&A Transactions in Sub Saharan African Hit $5.7Bn in Q12015

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Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, has released the quarterly investment banking analysis for the Sub Saharan Africa region.

According to estimates from Thomson Reuters / Freeman Consulting, fees for Investment Banking services in Sub Saharan Africa totalled $83.4 million during the first quarter of 2015, up 49% compared to the same period in 2014 ($55.9 mil), driven by increases across equity, debt and syndicated lending fees.

Sneha Shah, Managing Director, Africa, Thomson Reuters, said: “The value of announced M&A transactions involving Sub Saharan African targets reached $5.7 billion during the first quarter of 2015, almost double the value recorded during the same period in 2014 ($2.9 bln), despite falling 65% from the previous quarter.  The most targeted nation by value was South Africa, accounting for 48% of activity, followed by Nigeria (33%).  South Africa was also the most active buyer in the region, while Canada was the most active foreign buyer.”

“Equity and equity-linked issuance in Sub Saharan Africa totalled $2.5 billion during the first quarter of 2015, an increase of 141% from the value recorded during the same period in 2014 ($1.0 billion) and the highest first quarter total since 2007. Sub Saharan African debt issuance reached US$4.1 billion during the first quarter of 2015, 70% more than the value recorded during the same period in 2014, and the highest first quarter total in the region since 2011,” she added.

In respect to investment banking, fees from equity capital markets underwriting increased 46% year-on year to reach $30.3 million, marking the highest first quarter total in the region since 2011. 

Syndicated lending fees also increased from the first quarter of 2014, growing 122% to $10.4 million, while debt capital markets underwriting fees increased twelve-fold to $25.6 million. 

Fees from advisory on completed M&A transactions fell 39% to $17.2 million, marking the slowest first quarter total since 2005. 

Rand Merchant Bank topped the Sub Saharan African fee league table during the first quarter of 2015 with a 9% cut of the fees.  Citi and Deutsche Bank followed in second and third positions, respectively.
 
As for M&A activity during the first quarter of 2015, Eroton Exploration & Production Co Ltd acquired a 45% stake in the Oil Mining Lease 18 (OML 18) of the Nigerian state-owned Nigerian National Petroleum Corp for $1.1 billion in March. 

The deal was the largest in the region during the first quarter of 2015.  Boosted by this deal, Energy & Power was the most active sector during the first quarter of 2015, accounting for 29% of M&A activity.

Rand Merchant Bank topped the 1Q 2015 announced any Sub Saharan African involvement M&A ranking, with $1.4 billion, while Investec topped the Sub Saharan African target M&A ranking.
 
Equity capital markets was also active during the first three months of 2015, follow-on offerings dominated the market, with the largest from South African Aspen Pharmacare Holdings in March.  69% of deals, by proceeds raised, involved a South African issuer. 

The Healthcare, Financial, and Energy & Power sectors were the most active for equity issuance in the region during the first quarter of 2015. UBS and Citi shared the top spot in the Sub Saharan African Equity Capital Markets league table during the first quarter of 2015.

Debt capital markets in Sub Saharan Africa recorded the highest first quarter total in the region since 2011. South African Eskom issued the largest bond in the region so far this year.  The state-run utility sold $1.2 billion in 10-year fixed-rate bonds in February. 

Deutsche Bank took the top spot in the Sub Saharan African Debt ranking during the first quarter of 2015 with US$1.0 billion, or a 26% share.  Rand Merchant Bank and Standard Bank Group followed in second and third positions.


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EFCC Arrests Delta Accountant General Over ₦1.3 Trillion Fraud

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Economic and Financial Crimes Commission (EFCC) has arrested Mrs Joy Enwa, the Accountant General of Delta State, in connection with the alleged misappropriation of N1.3 trillion linked to former Governor Ifeanyi Okowa.

The EFCC is investigating funds reportedly diverted from the 13 percent derivation allocation intended for oil-producing states. Alongside Mrs Enwa, the anti-graft agency has questioned other officials, including a former Director of Finance and Administration and a senior Government House staff member.

EFCC spokesperson Dele Oyewale confirmed the arrest, stating, “Mrs Enwa was detained for questioning over the ongoing investigation into the mismanagement of state funds under the former administration. Some other government officials have also been interrogated.”

Mrs Enwa, who was appointed Accountant General by Okowa in 2020, previously served as Deputy Accountant General under Governor Emmanuel Uduaghan.

She had earlier faced allegations of involvement in a N369 million fraud case in 2015, which implicated other state officials and bank representatives.

The ongoing investigation has also uncovered assets allegedly tied to the fraud, including shares in UTM Floating Liquefied Natural Gas Company and investments in the oil sector.

Former Governor Okowa was detained by the EFCC in November at the agency’s Port Harcourt office over accusations of diverting state funds for personal enrichment.

When approached for comments, Mrs Enwa declined to elaborate, saying, “I am not the right source to confirm this story. Please contact the EFCC for clarification.” The EFCC continues its probe into what could be one of the largest financial scandals in Delta State’s history.

 


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NCDC Activates Emergency Response as Lassa Fever Kills 190

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Nigeria has launched an emergency response centre after recording 190 deaths from Lassa fever, a viral hemorrhagic illness, according to Nigerian Center for Disease Control (NCDC).

NCDC Activates Emergency Response as Lassa Fever Kills 190

The disease, mainly transmitted to humans via contact with food or household items contaminated with rodent urine or excrement, has infected 1,154 people in six Nigerian states.

Jide Idris, head, Nigerian Center for Disease Control, said the agency’s risk assessment has categorized it as high, prompting the activation of the emergency Operations Centre to manage the outbreak.

“While the disease occurs throughout the year, peak transmission typically happens between October and May, coinciding with the dry season when human exposure to rodents increases,” he said at a press briefing in Abuja.

The centre will ensure seamless coordination of the control and management of the outbreak.

Symptoms of the virus – which can also be passed between people through bodily fluids of those infected – include fever, headaches and, in the most severe cases, death.

The World Health Organization classifies Lassa fever as a priority disease due to its epidemic potential and lack of approved vaccines.

 

 


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2025 Budget: FG Earmarks N1.5Bn for Airports’ Internet, Others

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Federal government has proposed to spend N1.5bn for internet services for passengers at five international airports in the country.

2025 Budget: FG Earmarks N1.5Bn for Airports’ Internet, Others

The project, “Provision/Upgrade of WiFi Services for Passengers in Five International Airports and some Domestic Airports” was listed as a new project in the 2025 appropriation.

In some parts of the world, access to the internet via Wi-Fi at airports is regarded to be a basic human right.

Such amenities are lacking in Nigeria.

But the 2025 budget presented to the National Assembly last week by President Bola Tinubu saw the sum of N105.953,496,365 being allocated to the Ministry of Aviation.

Apart from internet access at the airports, some other capital allocations were reinstated for the Nigerian Airspace Management Agency (NAMA).

In previous budgets, three agencies of the ministry including the apex regulatory agency, the Nigeria Civil Aviation Authority (NCAA); the Federal Airports Authority of Nigeria (FAAN) and NAMA were exempted from the annual budgetary allocation.

In addition, the federal government deducts 50 per cent of the Internally Generated Revenue (IGR), which is against the standard and recommended practices of the International Civil Aviation Organisation (ICAO), which recommends that the funds generated by the agencies should be reinvested into improving infrastructure and boosting aviation safety.

 


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