Jubilee Holdings #ticker:JUB and Co-operative Bank #ticker:COOP have been named the top dealmakers in East Africa for 2020 following the completion of their multibillion-shilling strategic transactions.
Region’s top insurer Jubilee deal with Germany’s Allianz Africa, which involved a cash consideration of Sh10.9 billion ($100 million), emerged at the top in the ranking by DealMakers Africa— a South African-based mergers and acquisitions rankings provider.
Co-operative Bank’s Sh1 billion acquisition of 90 per cent stake in Jamii Bora Bank— now trading as Kingdom Bank— emerged the second in the ranking.
DealMakers Africa say the Jubilee-Allianz transaction is the largest announced in East Africa during 2020, and the region’s second single largest deal in the industry after the Sh27.4 billion ($250 million) UAP Holdings-Old Mutual deal in 2015.
“The transaction was complex, and involved a protracted negotiation process to meet the divergent needs of the buyer and the seller to achieve an alignment of interests,” says DealMakers on Jubilee deal.
Allianz will acquire controlling stakes in the general insurance business—also known as the property and casualty insurance segment— in Kenya, Tanzania and Uganda as well as the short-term insurance segment in Burundi and Mauritius.
“We are pleased to be recognised for entering into this exciting new partnership. We look forward to bringing to the East African market international industry best practice and increasing insurance awareness and accessibility to our customers,” said Jubilee Holdings Group chairman Nizar Juma.
Co-op’s 90 per cent stake in a lender with 17 branches, over 445,000 customers and Sh4.7 billion deposits gave the small bank lifeline.
The transaction has been billed to diversify the business models of the two institutions and benefitting Co-op’s diverse shareholders.
“The deal, which enhances the resilience of the Kenyan banking sector, provides Co-op Bank with the opportunity to rapidly expand its offering to micro, small and medium enterprises, and increase its revenue streams while leveraging on cost synergies,” said DealMakers.
DealMakers say the total value of deals for last year halved to Sh846.85 billion ($7.72 billion) from Sh1.7 trillion ($15.54 billion) in 2019 on Covid-19 disruptions.