Global emerging markets private equity investment firm, Actis LLP (Actis), has successfully exited its stake in C&I Leasing Plc (C&I Leasing), after completing a trade sale to Peace Mass Transit Limited (Peace Mass Transit), a leading transport company in Nigeria.
A notification sent to Nairametrics from Zahi El-Khatib, a representative of Actis, confirmed that although its exit process had attracted the attention of various strategic and financial buyers, the deal was sealed with Peace Mass Transit on the sound advice from its financial consultants.
What you should know
- Nairametrics reported that Peace Mass Transit purchased 313,326,316 units of the Neoma Africa Fund L.L.C. (formerly Aureos Africa Fund, L.L.C.) unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 each or its US$ equivalent in C&I Leasing Plc.
- When fully converted, the loan stock will result in the issuance of 987,500,000 ordinary shares of the company, this will represent 55.82% of the issued shares of the company.
- It is important to note that Actis invested in C&I Leasing in 2010. The terms of the loan stock from C&I Leasing gave Actis an option to convert the instrument to equity. The UK- based equity firm after reaching a deal with Peace Mass Transit sold the loan stock with all the rights.
- This, therefore, gives Peace Mass Transit an opportunity to convert the loan stock into equity and become the single largest shareholder in the company.
- Peace Mass Transit is a transport company with an interest in Banking, Oil & Gas, Pharmaceuticals, Agro Chemicals and Auto Assembly.
What they are saying
Dr. Sam Maduka Onyishi, Chairman and MD/CEO, Peace Mass Transit, said:
- “The decision to invest in C&I Leasing is a no-brainer, judging from the company’s remarkable growth trajectory in marine logistics and its other business lines. We have seen the value in C&I Leasing as a strong brand, hence it is a no brainer that we opted to buy out the loan stock from Actis, in a deal which we are confident will yield the expected return on investment.”
Andrew Otike-Odibi, MD and CEO of C&I Leasing, who also commented on the transaction, said:
- “As a viable business with a solid investment proposition and consistent growth in the last 30 years, we strive to increase our momentum to ensure positive return on investment to investors both in the short and long run. This strategic deal is evidence of a well matured investment portfolio and in line with stakeholder expectations.”
He reassured shareholders saying:
- “With Peace Mass Transit in the picture, I am very confident about the path of an enhanced equity base. The loan stock conversion will create opportunities to raise equity as new shareholders will have a level playing field to invest in a business with a proven track record of success. This will further impact positively on shareholders’ value.”