SSA M&As transactions totalled $3.8bn in Q1’2023

First quarter report of Refinitiv, an LSEG (London Stock Exchange Group) business released today, shows that Mergers and Acquisitions (M&As) transactions I’m Sub Saharan Africa (SSA) totalled $3.8 billion in the first quarter of 2023.
According to the report, an estimated $64.8 million worth of investment banking fees were generated in Sub-Saharan Africa during the first quarter of 2023, down 50 per cent from the first quarter of 2022 and the lowest first quarter total since 2010.  Fees declined 66 per cent compared to the fourth quarter of 2022.
On investment banking, an estimated $64.8 million worth of investment banking fees were generated in Sub-Saharan Africa during the first quarter of 2023, down 50 per cent from the first quarter of 2022 and the lowest first quarter total since 2010.  Fees declined 66 per cent compared to the fourth quarter of 2022. Equity capital markets underwriting fees totalled $9.6 million, an increase of nine per cent compared to the first quarter of 2022, which ranked as the slowest first quarter for Sub-Saharan Africa IB fees since 2010.  Debt capital markets fees declined 47 per cent to $23.2 million, while syndicated lending fees declined 15% to a nine-year low of $18.0 million.
Advisory fees earned from completed M&A transactions in the region reached $14.0 million during the first quarter of 2023, down 75 per cent from 2022 levels and marking the slowest first quarter for M&A fees in Sub-Saharan Africa since 2005. Seventy-four percent of all Sub-Saharan African fees were generated in South Africa during the first quarter of 2023, followed by Ivory coast (eight per cent) and Nigeria (five per cent).  JP Morgan earned the most investment banking fees in the region during the first quarter of 2023, a total of $14.3 million or a 22 per cent share of the total fee pool.
On mergers and acquisitions, the value of announced M&A transactions with any Sub-Saharan African involvement reached $2.9 billion during the first quarter of 2023, an 80 per cent decline compared to first quarter 2022 and the lowest first quarter total since 2003.  The number of Sub-Saharan African deals declined 30 per cent compared to a year ago, a nine-year low. Deals involving a Sub-Saharan African target totalled $2.3 billion during the first quarter of 2022, down 81 per cent from 2022 levels and a three-year low.  The number of deals declined 28 per cent from last year.  Inbound deals involving a non-Sub-Saharan African acquiror declined 85 per cent to $1.5 billion, while domestic deals declined 64 per cent to US$838.6 million.  Sub-Saharan African outbound M&A totalled $384.1 million, down 53 per cent compared to the value recorded during 2022 and a nine-year low.
Materials deal making totalled $699.4 million, or 30 per cent of first quarter 2023 Sub-Saharan African involvement M&A activity, an increase of 34 per cent compared to a year ago. Energy & Power and Consumer Products & Services rounded out the top three sectors for first quarter 2023 M&A activity.  Nigeria was the most targeted nation, followed by Zimbabwe and South Africa. Java Capital (Proprietary) Ltd topped the any Sub-Saharan African involvement announced M&A financial advisor league table during the first quarter of 2023.
On equipment capital markets, Sub-Saharan African equity and equity-related issuance totalled US$276.2 million during the first quarter of 2023, a 44% decline compared to the same period in 2022.  Just one issue was recorded in the region, equalling first quarter 2021’s deal count, the lowest first quarter tally in more than two decades. South African retail firm Pepkor Holdings was the only company in the region to raise new equity funds during the first quarter of 2023, with its follow-on offering raising $276.2 million.  No initial public offerings or convertible bonds were recorded.  Morgan Stanley and Capitalmind Investec shared first place in the Sub-Saharan African ECM underwriting league table during the first quarter of 2023.
On debt capital market, overall Sub-Saharan African debt capital markets activity totalled $3.8 billion during the first quarter of 2023, down 66 per cent compared to first quarter 2022 and the weakest opening period for DCM activity in the region since 2016. A total of 13 new offerings were brought to market in the first quarter of 2023, a 41 per cent decline compared to a year ago and a four-year low. Ivory Coast was the most active issuer nation during the first quarter of 2023, accounting for 65 per cent of total bond proceeds, followed by South Africa (32 per cent). Government & Agency issuers accounted for 65 per cent of proceeds raised during first quarter 2023, while Industrials issuance accounts for 26 per cent. JP Morgan took the top spot in the Sub-Saharan African bond bookrunner ranking during the first quarter of 2023, with $831.5 million of related proceeds, or a 22 per cent market share.

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