About eight major corporate transaction deals worth $80.2 million (KSh8.1 billion) were done in the East African region, up from 5 transactions in April.
Out of the 8 transactions, 5 involved Kenyan firms according to a report by I&M Burbidge Capital. Some of the notable deals in May are; Actus Education Holding Private Equity investment in Riara group of schools for a 22.3 per cent ownership stake, CDC Group $68.2 million (KSh6.9 billion) investment in the Malindi solar park, Tenlot Group’s acquisition of 85 percent stake in Kenya Charity Sweepstake, and Engie RDE $12 million (KSh1.2 billion) investment in Kenyan biogas company Sistema Bio.
As per the report, 34 corporate investments worth more than $859.4 million (KSh86.8 billion) have taken place since the start of the year. The transactions involve mergers and acquisitions, private equity investments, private equity exits, and joint ventures. Financial Services sector registered the highest number of deals followed by the health sector and energy, oil, and gas sector. Education and ICT sectors also booked a high number of corporate transactions.
The region has the fastest economic growth rate in Africa. In 2019, East African economies are projected to expand at an average rate of 6.1 per cent compared to a global average of 3.3 per cent. Additionally, the economies are well diversified and therefore shielded from the global economic challenges such as fluctuating oil prices and trade tensions between China and the US.
