Private equity firm, African Capital Alliance (ACA) announced in a release published on February 15, 2016 it has acquired a 49% stake in the reinsurance firm, Continental Reinsurance Plc that operates in 44 African countries.
The amount of the transaction carried out via Capital Alliance Private Equity IV (CAPE IV), an ACA-sponsored fund was not disclosed.
The transaction was possible through the dilution of the shares of Saham Finances, the insurance subsidiary of the Moroccan Saham Group, in Continental Re.
Subsequent to the dilution which was approved by the regulatory authorities, Saham Finances’ shares in the reinsurer dropped to 51% from 100%.
“This is an extremely positive move for our company and we are very pleased to have shareholders who share our determination to realise our vision for Africa”, said the Managing Director of Continental Re, Femi Oyetunji.
“The new structure will position Continental-Re favorably to bolster its strategic objectives and strengthen what it has achieved over the past few years in terms of our pan-African foothold, expansionary plans and market positioning as the largest private pan-African reinsurer, outside of South Africa”, he added.
Established in 1985, Continental Re is one of Africa’s main reinsurers. The firm, listed on the Nigerian Stock Exchange [NSE] since 2007, indeed supports more than 200 insurance companies operating in the various sub-regions of the continent and has offices in six countries (Nigeria, Kenya, Cameroon, Cote d’Ivoire, Tunisia and South Africa).
ACA focuses on sub-Saharan Africa. Since its establishment in 1997, the firm launched four private equity funds and a real estate fund that raised more than a billion dollars.
To date, ACA has made 40 investments, mainly in the oil and gas, financial, energy and consumption goods sectors.