NIGERIA – Global emerging markets private equity investment firm, Actis LLP (Actis), has successfully exited its stake in C&I Leasing Plc (C&I Leasing), after completing a trade sale to Peace Mass Transit Limited (Peace Mass Transit), a leading transport company in Nigeria.
Upon conversion of the loan stock into equity, Peace Mass Transit would become the single largest shareholder in C & I Leasing Plc.
Speaking on the development, The Chairman and Managing Director/Chief Executive Officer, Peace Mass Transit Limited, Dr. Sam Maduka Onyishi 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.
“The transaction will strengthen the capital base of the company and improve clarity of the capital structure.”
“We have seen the value in C&I Leasing as a strong brand, 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,” he said.
Also commenting on the transaction, Managing Director and Chief Executive Officer of C&I Leasing, Andrew Otike-Odibi, 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.
According to him, this strategic deal is evidence of a well matured investment portfolio and in line with stakeholder expectations.
“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,” Otike-Odibi added.
According to the company, all requisite documents in connection with the transaction have been executed by parties.
It added that the loan stock, when fully converted, would result in the issuance of 987,500,000 ordinary shares of the company, “which will represent 55.82 per cent of the issued shares of the company.”
“The transaction will strengthen the capital base of the company and improve clarity of the capital structure. This is highly beneficial to the company as the need for a possible redemption of the notes, with the company’s cash resources, has been eliminated.
“It is against this background that the shareholders approved the Conversion of the Notes to ordinary shares at an Extraordinary General Meeting held on 3rd November 2020. The purchase and eventual conversion of the shares will strengthen the company’s credentials as a leading Nigerian-owned service provider with operations in Nigeria, Ghana, and the United Arab Emirates.
“The Directors believe that this is a very positive development for the company,” it added.
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