Global emerging markets Investment firm, Actis, has sold off its stake in C&I Leasing to Peace Mass Transit, a transport company in Nigeria with interests in Banking, Oil and Gas, Pharmaceuticals, Agro Chemicals and Auto Assembly.
Peace Mass Transit purchased 313,326,316 units of the Neoma Africa Fund L.L.C. (formerly Aureos Africa Fund, L.L.C.) unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 each or its US$ equivalent in C&I Leasing Plc.
When fully converted, the loan stock will result in the issuance of 987,500,000 ordinary shares of the company, this will represent 55.82% of the issued shares of the company.
Actis invested in C&I Leasing in 2010. The terms of the loan stock from C&I Leasing, gave Actis an option to convert the instrument to equity. The emerging market investor has now reached a deal with Peace Mass Transit to sell the loan stock with all the rights. This therefore gives Peace Mass Transit an opportunity to convert the loan stock into equity and become the single largest shareholder in the company.
In a statement, Dr. Sam Maduka Onyishi, Chairman and Managing Director/Chief Executive Officer, Peace Mass Transit, said the decision to invest in C&I Leasing “is a no-brainer,” judging from the company’s remarkable growth trajectory in marine logistics and its other business lines.
“We have seen the value in C&I Leasing, hence it is a no brainer that we opted to buy out the loan stock from Actis, in a deal which we are confident will yield the expected return on investment.”
Also commenting on the transaction, Andrew Otike-Odibi, Managing Director and Chief Executive Officer of C&I Leasing, said: “As a viable business with a solid investment proposition and consistent growth in the last 30 years, we strive to increase our momentum to ensure positive return on investment to investors both in the short and long run,” adding that “this strategic deal is evidence of a well matured investment portfolio and in line with stakeholder expectations.”
Reassuring shareholders, the C&I Leasing MD further said: “With Peace Mass Transit in the picture, I am very confident about the path of an enhanced equity base. The loan stock conversion will create opportunities to raise equity as new shareholders will have a level playing field to invest in a business with a proven track record of success. This will further impact positively on shareholders’ value.
Peace Mass Transit’s increased investment in C&I Leasing is a glowing testimony to the fact that the company is in good standing, attractive, competitive, holding good prospects and primed to harness future opportunities in its core areas of operations while stabilizing its capital structure.
