Yemisi Izuora
Elephant Group Limited has announced that it has inked a deal with AfricInvest for an equity investment in the company. Pursuant to the investment, AfricInvest Fund will acquire a minority equity interest in Elephant Group via an issue of new shares.
The funds raised according to the statement from the group will be used to boost Elephant Group’s market share in agricultural commodities trading and to deepen penetration of agricultural commodities exports across selected markets in Africa. The Group will also continue to strengthen its backward integration initiatives in the rice, crude palm oil and fertilizer value chain.
The statement also said that Standard Chartered Bank (“SCB”) acted as sole financial advisor to Elephant Group on the transaction.
Yemisi Deji-Bejide Head Mergers & Acquisition, West Africa in her contribution said that “Standard Chartered is delighted to have worked with Elephant Group in achieving its strategic objectives and remains committed to assisting businesses in Africa to attract growth capital.
Tunji Owoeye, Founder and Group Managing Director of Elephant Group, in his own submission said that “We are excited to partner with an Africa-focused investor with experience in the agricultural sector. The investment will enable the Company to benefit further from government’s drive to promote agricultural productivity in Nigeria. The investment will also allow Elephant Group to transform from an indigenous agricultural commodities company in Nigeria to a vertically integrated Pan-African player. This transaction will be the first ever private equity investment in the Nigerian agricultural commodities sector, and we view it a strong vote of confidence in the Company”
Abiola Ojo-Osagie, Senior Partner & Managing Director of AfricInvest in Nigeria, while commenting on the transaction, said: “We have identified a Company led by entrepreneurs and a management team with a good knowledge of the domestic market. Through our partnership with the Elephant Group, AfricInvest is taking advantage of an opportunity to capitalize on Nigeria’s agricultural transformation agenda to build an enduring institution with a clear potential for growth and regional expansion”.
The transaction has successfully closed.
