Absa Corporate and Investment Banking (CIB) served as the sole Financial Adviser, Bookrunner, and Mandated Lead Arranger to a syndicate of investors in the takeover of ICT firm Alviva Holdings.
Alviva is a leading provider of information and communication technology goods and services in Africa.
The Consortium is made up of two substantial existing Alviva empowerment shareholders who combined possess 18.7% of the company’s issued share capital and will afterwards own about 72% of the company with management and another investor. The deal will considerably increase Alviva’s B-BBEE holdings.
“We are proud to have partnered with Alviva on this transaction as it not only supports our vision to support transformational deals, but also showcases our ability to provide a full suite of services to our clients,” says Christopher Biggs, Director, M&A Advisory at Absa CIB.
The deal involved a cash offer of up to R2.562 billion supported by multi-tranched purchase facilities to acquire all of the Alviva shares not already owned by the consortium of investors, made under a plan of arrangement. Absa will also provide operating capital to the company in the amount of R800 million.
With this deal, Absa will also become Alviva’s major banking partner.
Alviva CEO Pierre Spies says: “This landmark transaction aligns with our vision and will result in Alviva, which is one of the largest diversified ICT groups, becoming a majority black-owned and privately held company, repositioning the company to drive the strategic direction of the business for future growth and expansion.”
This agreement not only demonstrates Absa’s commitment to providing businesses with solutions that support long-term economic change, but it also demonstrates a deep knowledge of the prospects in the South African technology industry.
“Meaningful black participation, including ownership, at all levels of the South African economy should be a priority to ensure sustainable socio-political, financial, and economic stability in South Africa. We look forward to continuously driving economic transformation with innovative, fit for purpose solutions in South Africa, as well as the wider African continent,” concludes Biggs.
