Vol. 8

July 24, 2023

Happy Monday,

Get a snapshot of: last week’s IB earnings reports, a resurging IPO market, and a relatively robust week for M&A deals in South Africa

Wall Street Sees Glimmer of Hope for Investment-Banking Revival

After more than a year in the dealmaking doldrums, Wall Street giants are finally seeing signs of life in their capital-markets businesses.
Bank of America Corp., Morgan Stanley, JPMorgan Chase & Co. and Citigroup Inc. all beat analysts’ expectations for equity-underwriting revenue in the second quarter, with all but Citigroup earning more than they did a year earlier from that business. The biggest banks — again with the exception of Citigroup — also surpassed estimates for debt underwriting.

Blackstone reaches record $1 trillion in assets; Q2 earnings slump

Blackstone Inc said on Thursday it became the first manager of alternative investments such as private equity and real estate to reach $1 trillion in assets, a milestone accompanied by news its second-quarter distributable earnings dropped 39% amid a slump in asset sales.
Blackstone achieved its $1 trillion goal three years ahead of schedule after setting out in 2018 to hit that level by 2026. Its biggest rival, Brookfield Asset Management Ltd, has $825 billion in assets.
The moment was seminal for Blackstone's CEO Stephen Schwarzman, who co-founded the New York-based firm in 1985 with just $400,000 in start-up capital.

Scatec sells Mozambique solar power plant to Globeleq for USD 8.5 million in line with strategy

Scatec ASA, a leading renewable energy company in emerging markets, has today signed an agreement with Globeleq to sell its 52.5% equity share in the 40 MW Mocuba solar power plant in Mozambique for USD 8.5 million (NOK 85 million), in line with the company’s strategy.
Globeleq is an independent power producer in Sub-Saharan Africa, with over 2.1 GW power production capacity in operation or under construction. The company is owned 70% by British International Investment and 30% by Norfund.

Vantage Capital invests $25 million in Aquasantec International

Vantage Capital, Africa’s largest mezzanine debt fund manager, announced that it has made an investment into Aquasantec International, a manufacturer and distributor of water tanks, pipes and related products, addressing water, sanitation and hygiene needs across the East African region.
Vantage invested $25m into Aquasantec in June 2023, in the form of mezzanine debt and ordinary equity, acquiring a controlling shareholding in the Group as part of a leveraged management buy-out. The founding Shah family, Ramco Group (a diversified conglomerate in Kenya) as well as Terra Mauricia (a publicly listed conglomerate in Mauritius) disposed of their shareholding in the Group as part of the transaction.

Israel's Oddity Tech valued at $2.8 billion in Nasdaq debut

Oddity Tech's shares opened 40% over their initial public offering price on Wednesday, giving the Israel-based company a valuation of $2.8 billion in its debut on the Nasdaq.
Oddity, a beauty and wellness products company, and its selling shareholders raised $424 million by selling 12.1 million shares at $35 a piece, above an already upwardly revised range of $32-$34 per share.
U.S. exchanges have seen a plethora of new listings as the IPO sector has staged a comeback after investor confidence returned to the market.

“Hardships often prepare ordinary people for an extraordinary destiny.”

C.S. Lewis

Tanzania’s Kagera Sugar to acquire Tongaat Hulett sugar assets

Tongaat Hulett has secured Kagera Sugar as a strategic equity partner in a deal that will see the Tanzanian sugar giant acquire the sugar assets of the troubled sugar producer and property group.
The currently suspended JSE-listed group, which went into business rescue in October 2022, confirmed on Friday that the proposed transaction will comprise the acquisition of its complete sugar division in South Africa as well as its sugar businesses in Zimbabwe, Mozambique, and Botswana.
Tongaat did not confirm the monetary value of the equity deal, nor did it say whether the group would stay on the JSE (based on the bourse lifting the suspension of trade in the company’s shares).

Impala wins RBPlat bid battle as Northam sells stake

Impala Platinum (IMPJ.J) has won a protracted battle for control of miner Royal Bafokeng Platinum after bid rival Northam Platinum (NPHJ.J) sold its stake.
Johannesburg-based Impala tabled an offer to acquire all outstanding RBPlat shares in January 2022, but was held back for over a year by Northam, whose intention to make a counter offer was terminated in April.
The sale of Northam's 34.5% holding will raise Impala's stake in the smaller platinum-group metals producer to 91%.
Northam had bought its RBPlat stake at an average price of 180 rand per share, but would receive 131 rand per share, based on Impala's latest share price.

Super Group acquires UK’s CBW Group Holdings Limited

Super Group is pleased to announce that it has concluded a sale and purchase agreement to acquire 78.82% of the equity of CBW Group Holdings Limited from existing management, trading as Amco, for a purchase consideration of GBP 30.3 million.
Super Group’s strategy is to make selective acquisitions in its core supply chain, fleet solutions and dealerships businesses. The acquisition of Amco will significantly complement the Group’s supply chain offering, providing opportunities for market share gains across the UK and Europe.

Bourse A Stock Exchange

Sponsor A range of individuals or entities that support the goals and objectives of some other individual or organization

TMT An industry grouping that includes Technology, Media and Telecommunications companies

Thanks for reading!

All the best,

Hlumelo Lujiva💙