After its successful acquisition of a 26.32 percent stake in popular supermarket and Grocery Delivery company; Naivas for a 100 million United States Dollars (USD) which is around 12.3 billion Kenyan Shillings, IBL Group is now looking to increase its investments in the East African region.
The multinational conglomerate: IBL Group, is now looking to purchase majority stakes in a pharmaceutical distributor and a solar company. Both companies have operations in East Africa.
IBL Group did not however reveal the identities or names of the companies in questions, making it known that the final negotiations with the shareholders of said companies are already underway.
IBL Group stated that it is in a partnership with a financial investor for each of the two acquisitions.
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In a notice IBL Group stated that, “IBL wishes to inform its shareholders and the public in general that IBL Energy Holdings Limited (a wholly owned subsidiary) has, together with a financial co-investor, signed a letter of intent for the proposed acquisition of a majority stake in a solar solutions provider operating in East Africa.”
It added that, “The proposed acquisition is in line with IBL’s strategy to grow and expand its established business in East Africa and in green energies.”
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In a separate revelation IBL Group made it known that it will also be looking to acquire a majority stake in a major medical and pharmaceutical distributor in East Africa, making it known that the deal in question will enable it to grow its market share in the region and in the life sector in general.
The success of the two acquisitions is however, dependent on a number of conditions like securing corporate approvals, the necessary regulatory approvals and fulfilling the legal requirements needed.
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IBL Group’s back to back acquisition moves on the African continent are an indicator of its determination to further grow its local and regional market shares in Africa which is one of the fast growing economic focal points in the world.
IBL Group will be partnering with fellow Mauritian company; CIEL Agro Limited to secure shares in Kenyan company; Transmara Sugar Company Limited from subsidiary; Alteo Limited which is one of the leaders in the Sugar, renewable energy and property sectors of the Indian Ocean. Alteo is also a major player in the Sugar sector in Mauritius.
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IBL Group and CIEL Agro Limited will both be migrating the Sugar production operations in Kenya and Tanzania from Alteo to a new investment Umbrella known as Miwa Sugar Limited. Miwa Sugar Limited was incorporated earlier on in 2022.
IBL Group made it known that, “The spinoff of Alteo’s overseas operations in Kenya and Tanzania into Miwa Sugar has been initiated. Miwa Sugar, which will be an associate of IBL Ltd, will continue to develop its regional footprint mainly in East Africa, while Alteo remains focused on the local cane activities, coupled with property development in Mauritius.”
In June of 2022 IBL Group led a consortium of international investors in the successful buyout of a combined 40 percent stake in Naivas via Mambo Retail for a total of 151.97 million United States Dollars which translates to 18.7 billion Kenyan Shillings.
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The IBL Group led consortium acquired the stake from the family of the Founder of Naivas; Peter Mukuha Kago, German Fund; DEG, private equity firm; MCB Equity Fund, the International Finance Corporation (IFC), and private equity firm Amethis.
Proparco a French sovereign wealth fund is one of the other establishments that partnered with IBL Group to invest in Naivas.
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