Private equity firm RMB Corvest eyes big deals in Africa.

By bne IntelliNews June 6, 2012
South African private equity company RMB Corvest is considering several potential deals in South Africa and four other countries on the continent, as part of an acquisition-led growth aimed at boosting earnings, Business Day reported. Mike Donaldson, a director at RMB Corvest, told the business daily that the company would invest in deals from ZAR 100mn up to ZAR 1bn (EUR 94.6mn) in growth sectors such as fast-moving consumer goods. He added that RMB Corvest has a pipeline of deals to evaluate in South Africa, Nigeria, Kenya, Tanzania and Ghana. Private equity activity has not been significantly hit by the uncertainty in Europe, as the sector in South Africa has an estimated over ZAR 34bn in capital to fund deals, according to a recent study by KPMG. According to Donaldson, the market for deals, particularly in the small and medium sector, is buoyant, despite increased cautiousness by investors. Sub-Saharan Africa attracts private equity investors thanks to its high economic growth, expected to exceed an average of 5.4% for the region this year, according to Moody's. RMB Corvest and Shalamuka Capital announced this week an empowerment deal with South African Respiratory Care Africa, a leading importer and distributor of specialist medical equipment to public and private healthcare institutions.

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