Theme International Holdings’ US 1-billion dollar (about R10,6-billion) offer for oilfield exploration and production company Everest Hill Energy is the largest merger and acquisition deal to be announced in sub-Saharan Africa so far this year, according to Keith Nichols, managing director for Africa of Thomson Reuters.
Boosted by this deal, energy and power was the most active sector, accounting for 33% of first half deals. Nichols also discloses that energy and power was the most active sector for equity issuance in the region. The largest initial public offering, and the second largest equity offering during the first six months of the year, was from Nigerian-based Seplat. The oil company raised US540,5-million dollars in a dual listing on the London and Nigerian Stock Exchanges in April.
Speaking about debt capital markets in sub-Saharan Africa, Nichols points out that debt issuance during the first half of 2014 marked the highest first half total since 2011. “The African Development Bank, headquartered in the Ivory Coast, raised a total of US$2.7-billion dollars, accounting for 53% of activity in the region. Deutsche Bank took the top spot in African debt ranking for the first half of 2014 with US$1.2-billion dollars, or a 22% share. Barclays and Citi followed in second and third positions.”