KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL
FANews
FANews
RELATED CATEGORIES
SUB CATEGORIES General | 

Sub Saharan Africa Mergers and Acquisition transactions totalled US$ 129.7 billion in 2021

20 January 2022 Refinitiv

South Africa – Refinitiv today released the 2021 investment banking analysis for the Sub-Saharan African. According to the report, an estimated US$506.0 million worth of investment banking fees were generated in Sub-Saharan Africa during 2021, 8% less than in 2020 and the lowest annual fee total in the region since 2014.

While debt capital markets underwriting fees increased 128% to US$150.3 million, the highest full year total since our records began in 2000, fees from equity capital markets underwriting, M&A advisory and syndicated lending all declined from 2020.

Equity fees declined 35% to US$56.9 million, while syndicated lending fees declined 17% to US$216.0 million. Advisory fees earned in the region from completed M&A transactions reached US$82.9 million, down 38% year-on-year to the lowest annual total since 2003. Fifty-five percent of all Sub-Saharan African fees were generated in South Africa during 2021, and 25% were earned from deals in the financial sector. Standard Chartered earned the most investment banking fees in the region during 2021, a total of US$37.7 million or a 7.5% share of the total fee pool.

MERGERS & ACQUISITIONS

The value of announced M&A transactions with any Sub-Saharan African involvement reached US$129.7 billion during 2021, more than four-times the value recorded during 2020 and the highest full-year total since our records began in 1980. The high dollar-value was boosted by the Naspers/Prosus share swap in May, and Redefine Properties’ offer for the remaining shares in retail property company EPP, which together were worth a more than US$70 billion. The number of deals increased 13% from 2020 to a four-year high of 853.
M&A involving a Sub-Saharan African target reached US$79.6 billion, again lifted by the share swap to an all-time record annual total, while the number of deals increased 21% over the previous year. Inbound deals, involving an acquiror outside of Sub-Saharan Africa, increased 164% to US$20.1 billion, while outbound M&A reached an all-time high of US$42.3 billion.

High technology was the most targeted sector by value in Sub-Saharan Africa during 2021, while the materials sector saw the highest number of deals in the region. South Africa was the most targeted nation, with US$63.7 billion in M&A announcements over the year, equivalent to 80% of total activity recorded in the region.
With advisory work on deals worth a combined U$52.1 billion, Morgan Stanley held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during 2021.

EQUITY CAPITAL MARKETS

Sub-Saharan African equity and equity-related issuance reached US$1.4 billion during 2021, down 43% compared to 2020 and the lowest annual total since 2005. The number of issues declined 38%, again to a 16-year low. Issuers in South Africa raised more in the equity capital markets than any other Sub-Saharan African nation during 2021, a total of US$979.6 million, followed Mauritian and Ugandan issuers.

Follow-on offerings raised US$1.3 billion in 2021 with Pepkor Holdings, Lighthouse Capital and financial services group FirstRand Ltd among those in the region raising new equity funds from follow-ons in 2021. Just one initial public offering was recorded in the region during 2021, MTN Uganda raised U$163.0 million listing on the Uganda Securities Exchange in December. Investec and Goldman Sachs share first place in the Sub-Saharan African ECM underwriting league table during 2021, each with a 24% market share.

DEBT CAPITAL MARKETS

Sub-Saharan African debt issuance totalled US$43.5 billion during 2021, up 125% from the value recorded during 2020 and the highest full-year total since our records began in 1980. The number of new offerings brought to market increased 46% over 2020 to a four-year high of 73. South Africa was the most active issuer nation during 2021, accounting for 26% of total bond proceeds, followed by Ivory Coast and Nigeria with 22% and 16%, respectively. DCM activity from Government & Agencies accounted for 51% of issuance during full year 2021, while financial sector issuance accounted for 26%. Citi took the top spot in the Sub-Saharan African bond book runner ranking during 2021, with US$6.7 billion of related proceeds, or a 16% market share.

Quick Polls

QUESTION

Are you shocked by Sasria’s 2022 rate increases, or is it expected given the sheer scale of the July 2021 rioting plus the ongoing increase in frequency and severity of protest losses?

ANSWER

Yes, I am shocked and so will my clients be shocked
No, it was expected
fanews magazine
FAnews November 2021 Get the latest issue of FAnews

This month's headlines

New proposals to amend PPRs have major impact
The untold truth about intermediary agreements
Rethinking claims
Tik-Tok: The clock is ticking on SA’s R45 billion unclaimed benefits bomb
Medical schemes’ average increases for 2022
Disability claims aggregation
Subscribe now