Bayport Management Ltd: Bayport enters into acquistion agreement and raises
USD 137 million in equity funding
Bayport Management Limited ("Bayport" or the "Company") has entered into an
agreement (the "Agreement") with Transaction Capital Limited ("Transaction
Capital") to acquire 100percent of the shares in Bayport Financial Services
2010 Proprietary Limited ("BFS") and Zenthyme Investments Proprietary Limited
("Zenthyme") from Transaction Capital (the "Transaction").
The cash consideration payable by Bayport to Transaction Capital will total
circa ZAR1,610 000 000 (corresponding to circa USD 162million). Following
the implementation of the Transaction, the combined group of Bayport, BFS and
Zenthyme will have balance sheet assets exceeding USD 1.3billion.
The Transaction will mainly be financed through a USD 137million new equity
issue in Bayport, of which funds advised by Helios Investments Partners
("Helios"), a premier pan-African private equity investment firm, will invest
USD 100 million. The remaining portion of the cash consideration to be paid
under the Agreement will be debt financed.
Following the completion of the Transaction, Helios and the renowned Swedish
emerging market investor, and current shareholder of the Company, Investment
AB Kinnevik will together own more than 50percent of the shares in the
The Transaction is subject to closing conditions, including that Bayport
concludes agreements to raise funds to enable it to discharge the
consideration to be paid under the Agreement as well as necessary shareholder
and regulatory approvals.
Gernandt & Danielsson has acted as Swedish legal advisor to Bayport.
BFS and Zenthyme
The business conducted through BFS (and its subsidiaries) and Zenthyme
includes the provision of unsecured credit and related products, cellular
handset and airtime subscription agreements and related products, to
historically under-served low to middle income individuals in South Africa.
The business provides clients with personalised and direct access to credit,
by originating retail loans through a wide distribution network of
approximately 2,211 mobile, commission earning independent agents; operating
out of 56 branches and 33 kiosks at selected South African Post Office outlets
nationwide and backed by three call centres.
Helios is an Africa-focused private equity investment firm, managing funds
totalling over USD 1.8 billion. It invests in growth equity investments and
new business formations in high-potential sectors, acquisitions of large,
established businesses and structured investments in listed entities,
investing between USD 30 million and USD 200 million per transaction. Helios'
portfolio companies operate in more than 30 countries in all regions of
Africa. Founded in 2004 and led by co-founding partners Tope Lawani and
Bayport is a leading provider of unsecured credit and financial solutions to
the formally employed mass markets in emerging markets in Africa (Zambia,
Ghana, Uganda, Tanzania, Botswana and Mozambique) and Latin America
(Colombia). Today, Bayport services over 270,000 customers (total loan
portfolio of approximately USD 400 million) through 289 branches, with the
support of 3,300 employees. Bayport has further developed a broad global debt
and equity investor base and wide relationships with multinational and
domestic banks and insurance and pension funds in its markets of operation and
Bayport Management Limited is required to make public this information in
accordance with the Swedish Securities Market Act and/or the Financial
Instruments Trading Act. The information was released for publication
on23October 2013 at 07:30 (CET).
For additional information, please contact Grant Kurland +44 (0) 7720 498706 /
David Rajak +27 (0) 82 901 9363, firstname.lastname@example.org or
BML announcement 23 Oct 2013
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information contained therein.
Source: Bayport Management Ltd via Thomson Reuters ONE
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