South Africa Wealth Fund To Expand Investment In Dangote Group

VENTURES AFRICA – Public Investment Corporation (PIC), South Africa’s biggest sovereign wealth fund, on Monday said last week’s transaction with Dangote Cement will open up new acquisition prospects in Dangote’s other operations.

Head of Resources at PIC, Fidelis Madavo, said these operations included Dangote’s sugar, flour, oil refinery and port operations.

Last week PIC said it had bought 1.5 percent of Dangote Cement, Nigeria’s largest listed company, in a deal valued at $289.3 million. PIC bought the shareholding at 179 naira a share.

Last week, Ventures Africa reported that PIC’s latest move was a sign that the JSE’s biggest investor is now committed to diversifying its geographic investment spread.

PIC made the announcement last week after it had bought 19.58 percent of pan-African bank, Ecobank Transnational, in a transaction worth $250 million.

This was its initial main transaction outside of South Africa.

It is understood that PIC has about $7 billion to be splashed in the African continent.

According to Leadership, the money will be invested in almost 20 listed firms in the consumer, infrastructure, telecommunications and agro business as growth rates in the continent continue on an upward trajectory.

Lanre Buluro, head of research at Primera Africa Securities, told Leadership it would be interesting to check if the PIC will investigate other opportunities outside Dangote in Nigeria.

“That would be positive for our market,” Buluro told Leadership.