Actis seeks COMESA approval for Abraaj takeover

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Actis
PHOTO/COURTESY: ACTIS

Private Equity (PE) Firm Actis is seeking approval from the COMESA Competition Authority (CCC) to acquire management rights of two PE firms previously managed by Dubai based firm Abraaj, Abraaj Private Equity Fund IV and Abraaj Africa fund III.

According to the Business Daily, Actis acquired management rights to the two aforementioned firms in July after Abraaj collapsed following allegations that the firm deceived investors and misused funds. The deal comprises investments in 14 companies owned by the two funds and it was preceded by two other pacts that saw Abraaj transfer management of its US$ 1 billion fund to US company TPG and the sale of Abraaj’s Latin America fund to Colony Capital.

“The Commission will, in accordance with the provisions of the regulations, determine among other things whether or not the merger is likely to substantially prevent or lessen competition within the Common Market and whether the merger is or would be contrary to the public interest as provided for under Article 26 of the Regulations,” said the COMESA agency following the Actis application according to the Business Daily.

“In view of this, the Commission hereby gives notice to all interested stakeholders, including competitors, suppliers and customers of the merging parties to submit written representations to the Commission with regard to the subject matter,” the COMESA agency added. Locally, Abraaj had stakes in eatery Java and Brookside Dairy before its collapse. The firm had invested Ksh. 320 billion to augment its operations across Africa with a good part of the investment being injected into its Kenyan operations. By the time of its collapse, the firm had not revealed the exact value of its Kenyan operations.

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