European bank bids for three bailed-out banks

European bank bids for three bailed-out banks

The Trend to Watch in 2010: Mobile Operator Network Sharing

Mobilserve, leading Telecom Infrastructure Solutions Provider Sees Network Sharing as Key Growth Driver for Region's Mobile Operators.

Mobilserve, the region's leader in turnkey telecommunication infrastructure solutions and engineering services, predicts strong growth for mobile operators fueled by growing demand for data and 3G services. Subscription rates are forecast to grow substantially in the coming years, with Egypt emerging as the second fastest growing market in Africa.

Standard Chartered Private Equity Invests $47.5m in Seven Energy

Standard Chartered Private Equity Limited has announced that it has invested $47.5m to acquire a minority stake in Seven Energy, a leading Nigerian gas exploration and development company. Seven Energy was formed in 2007 and is focused on the provision of gas to leading industrial firms in Nigeria.

Standard Chartered’s investment will aid in the development of Seven Energy’s business and toughen its competitive positioning. The use of funds will provide a much needed spur for the company to provide to Nigeria’s growing energy needs.

Private equity group, Abraaj Capital, has raised $375 million from existing shareholders via rights issue or cash call

The Dubai-based buy-out firm will be using the proceeds from the sale to invest in real estate and small businesses starting early 2010.

Abraaj is setting up a $500 million vehicle to invest in regional commercial real estate and a $200 million fund to invest in small and medium-sized enterprises. The firm is also looking at aviation, logistics, education and healthcare sectors in Egypt, Saudi Arabia and the UAE for expansion.

The Nigerian Electricity Regulatory Commission awarded a generating license to Dangote Industry Power Ltd.

Dangote plans to generate 135 megawatts of electricity at the proposed plant out of which 46 megawatts will be consumed by its Obajana Cement plant in the central Nigerian state of Kogi. The remaining 89 megawatts will be sold to the national grid.

The regulator has granted 29 licenses to companies to produce power to boost generation to 6,000 megawatts by the end of this year and 10,000 megawatts by 2011.

Dubai-based private equity firm Saffar Capital is launching a private equity fund

The fund will focus on financial services in the Middle East to take advantage of an improving outlook in the sector.

The fund is the first to be launched by Saffar, which specialises in taking stakes in private equity financial services firms in the region.
Private equity investments are increasingly finding favour in the frontier markets of the Middle East and Africa, as investors once more chase yield in a global environment of low interest rates.

AVCA 8th Annual Conference to be held under auspices of Egypt's Ministry of Investment

Investors and fund managers descend on Cairo for the African Venture Capital Association's (AVCA) 8th Annual Conference, which is due to take place here in Cairo on 15th - 17th of November. The prominence of the conference is such that it will be held under the auspices of Egypt's Ministry of Investment.

Ghana: Exploit Opportunities in Growing Tourism Sector

TradeInvest Africa (Cape Town)

Ghana's tourism sector is expected to grow at an average rate of 4.1% over the next two decades, indicating a need to build more tourist accommodation. There is an opportunity to participate in the development of a beach complex in Kokrobite, a popular tourist destination about 30kms west of the Ghanaian capital city of Accra.

The fishing village of Kokrobite is a popular destination for tourists seeking a quiet, tropical paradise with beautiful sandy beaches. There exists a burgeoning demand for day, weekend and longer-term accommodation and European standard restaurant and entertainment facilities, particularly near the beachfront.

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World bank's IFC to raise capital for Africa, Latam fund

The International Finance Corporation is seeking fresh capital to invest in Latin America and Africa, its chief executive Lars Thunell said Saturday. The investment arm of the World Bank group, aims to raise up to $1 billion from institutions such as sovereign wealth funds and pension funds around the world for the new fund

Original post:
World bank’s IFC to raise capital for Africa, Latam fund

Citi Venture Capital International investing $25 million into SkyVision Holdings Limited

Citi Venture Capital International (CVCI), is going to invest USD25 million into SkyVision Holdings Limited. The investment will be made through a wholly owned subsidiary of the Citigroup Venture Capital International Africa Fund L.P (CVCIAF), a private equity fund advised by Citi Venture Capital International.

SkyVision is a provider of global IP services over satellite and terrestrial fibre optic systems for enterprise, ISP, and carrier class clients in emerging markets. The company has coverage in over 120 countries and currently operates in more than 50 countries around the world, with sales in 2009 estimated to exceed USD80 million. In Africa, Skyvision services the largest and most respected telcos, mobile operators, corporations and public sector clients. In the past five years, the company has achieved growth rates of approximately 50% per year. The company is controlled by Cyphertech and Shamrock, the investment arm of the Roy E. Disney family. Pursuant to the investment, Cyphertech and Shamrock will hold approximately 30 percent each, CVCIAF will hold approximately 23 percent, and the remainder will be held principally by management and employees. Sunil Nair, Managing Director and Head, Central/Eastern Europe, Middle East & Africa, Citi Venture Capital International, mentioned that investment demonstrates CVCI’s commitment to supporting and further strengthening companies with a proven record of success in Africa.

IMImobile has been picked to provide technology and services to emerging markets telecommunications company MTN Group Ltd.

IMImobile has been chosen to help MTN standardise its mobile phone and online content in 21 markets in which it operates.

IMImobile said the deal was "a major commercial milestone." Financial terms weren't disclosed.

IMImobile is Venuture Capital firm Spark Ventures PLC biggest holding. It has a 38% stake in the company with a book value of GBP13 million.

This Deal will see IMImobile help South African operator standardise mobile, online content.

Nigeria could sell stakes in its joint ventures with Western oil firms to China

Minister of State for Petroleum Odein Ajumogobia said China would not be given all the reserves it was seeking but that Nigerian state oil firm NNPC could sell stakes in joint ventures with existing oil partners if Beijing offered the right price.

The Chinese made a proposal which Nigeria is considering. They are asking for 6 billion barrels of oil from our reserves, but according to Ajumogobia, Nigeria is not going to give them all of that.

Western oil firms including Royal Dutch Shell (RDSa.L), Chevron (CVX.N) and ExxonMobil (XOM.N), operate in Nigeria through joint ventures with NNPC.

Asked if the state firm could sell its stakes to China, Ajumogobia said:
"It's an option we are also looking at. Why not? If the offer is very good and very attractive why not? NNPC has the right to do whatever it likes with its own share."

Some analysts say the sale of stakes to China by NNPC would likely be challenged by other partners in the ventures and that the prospect of putting a greater proportion of Nigerian oil reserves in foreign hands would face huge political opposition.

Chinese state energy firm CNOOC has identified 23 licenses in Nigeria in which it would like to buy stakes.

Emerging Capital Partners Invests In ananchi Group Holdings, a telecommunications company

The Africa-focused private equity firm, Emerging Capital Partners has committed $25 million to Wananchi Group Holdings, a telecom company specializing in pay-television and Internet services in Kenya and Tanzania

The equity investment will be used to upgrade and expand Wananchi's network infrastructure, enabling the company to provide east Africa's first triple-play service of digital pay-TV, high-speed Internet and voice-over-Internet protocol services.

ECP disclosed that East Africa has been characterized by limited supply of pay-TV and Internet services due to high costs and inadequate infrastructure.

Virgin Nigeria dropping the U.K. company's brand, Virgin Atlantic and seek fresh funding

The carrier new brand will be known as Nigerian Eagle Airlines and plans a private placement.

Virgin Atlantic, which has a 49% stake in the Nigerian carrier, has been reassessing its ties in recent months. Nigerian institutional investors hold majority control.

Virgin Nigeria dropped all its international flights in January to focus on what it called its "profitable domestic and regional operations."

Virgin Nigeria was part of an array of international affiliates launched by entrepreneur Sir Richard Branson, including airlines in Belgium, Australia and the U.S.

Nigeria - Central Bank (CBN) is considering three options to recapitalise the country’s five troubled banks

The banks are: Intercontinetal Bank; Oceanic Bank; Union Bank; Finbank and Afribank.
The Central Bank is considering three local options aimed at acquisitions of the five troubled banks following the seeming collapse of its offshore investment mission.

The three options which the apex bank is considering are:

Option 1: Rights Issue

In which the apex bank hopes to execute a rights issue, converting the tier two capital (the amount injected) to 80 per cent stake in the affected banks’ shareholding, leaving the other shareholders with 20 per cent.

Option 2: Scheme of Arrangement

The CBN management is said to be considering the alternative of getting the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange NSE, to do a “Scheme of Arrangement”. The thinking in the CBN is that this option is the most viable now and if applied, it will involve a legal means of bringing shareholders of these banks to an extra-ordinary General Meeting to agree to a merger or acquisition arrangement.

Option 3: Acquisition

If the first two options fail, the apex bank would then go for the third option which is acquisition.

This involves nominating a bank in the country to acquire any of the five banks and then backing the action with statutory powers.

Emerging markets giant Actis is adjusting to life after the closing of its $2.9bn third fund by building up its IR and communications teams.

The appointments follow the closing of Actis’ $2.9 billion Emerging Markets 3 Fund in December 2008 – its largest-ever vehicle. Actis has raised smaller real estate funds, including its first dedicated property vehicle for sub-Saharan Africa in 2006, which had more than $350 million of investment capital with leverage.

In this newly-created position, Turtle will manage a seven-strong IR team and report to Actis partner Jonathan Bond, who has been responsible for the firm’s fundraising efforts since before it demerged from CDC Group in 2004. His immediate focus will be communication with the 100 existing institutional investors in Actis’ latest vehicle.

Actis has also revamped its external communications function with the hire of Tashi Lassalle as director of communications. Lassalle, formerly chief marketing officer for listed recruitment company Heidrick & Struggles, has replaced Actis’ incumbent external public relations agency and is mandated to build a permanent communications team.

Breaking News: CBN Appoints new CEO’s for 5 banks, reveals N2.4trn debt

Source: Proshare Limited

The CBN, this morning, at the Emergency Bankers’ Committee convened by the CBN in Lagos confirmed the rumour that has been making the rounds all week that the CEO and Executive Directors of the following five banks have been removed:

1. Erastus Akingbola (Intercontinental Bank);
2. Okey Nwosu (Finbank);
3. Sebastian Adigwe (Afribank Plc);
4. Mrs Cecelia Ibru (Oceanic Bank Plc); and
5. Bartholomew Ebong (Union Bank Plc).

The CBN Governor, Lamido Sanusi explains that the result of the special examination done by the joint team from CBN and NDIC reveals excessive credit lending in the following banks – Oceanic Bank Plc, Intercontinental Bank Plc, Afribank Plc, FinBank plc, and Union Bank of Nigeria Plc.

The CBN Governor says that the CBN today injected N400bn tier 2 capital into the 5 banks. This is to be repaid soon from their offer proceeds.

The CBN Governor ANNOUNCES the following appointments:

1. Mr. John Aboh to take over as CEO of OCEANIC BANK Plc
2. Mr. Lai Alabi to take over as CEO at INTERCONTINENTAL BANK Plc
3. Mr. Arah NEBOLISA to take over as CEO at AFRIBANK Plc
4. Susan Iroche to take over as CEO at FINBANK Plc
5. Mrs. Funke Osibodu to take over as CEO at UNION BANK Plc

Lamido says there will be no setting up of an asset Management Company or bad loan bank until full declaration of exposures by all banks.

Breaking News....

BREAKING NEWS: Dangote is the NSE PRESIDENT. A formal announcement to follow by the DG and new President within the hour.

African Capital Alliance raises $200 million

African Capital Alliance (ACA) announces the first closing of USD 200 million for Capital Alliance Private Equity III (“CAPE III”), a private equity fund which seeks to tap high potential opportunities in sectors such as financial services, oil and gas, power (electricity) supply, communications, manufacturing and services in Nigeria and the West African sub-region. African Capital Alliance mobilizes long-term capital from institutional investors to promote private sector led investments.

The investors in CAPE III include well-known international development finance institutions such as CDC Group, the European Investment Bank, the International Finance Corporation, and Netherlands Development Finance Corporation. In addition, commitments have been made by Nigeria-based institutional investors including First Trustees Nigeria Plc, AIICO Insurance Plc, Africa Re-insurance Corporation and some high net worth individuals.

Breaking News

ALHAJI ALIKO DANGOTE stepped down from the Council of Nigerian Stock Exchange.

Further updates will be provided next week.