Transformational deals that empower

Johannesburg - Absa Corporate and Investment Banking (CIB) acted as sole Financial Advisor, Bookrunner and Mandated Lead Arranger to a consortium of investors on the take private of ICT group Alviva Holdings.

Alviva is one of Africa’s largest providers of information and communication technology products and services.

The Consortium is comprised of two significant existing empowerment shareholders of Alviva who collectively own 18.7% of the issued share capital of the company and who will subsequently hold approximately 72% of the company alongside management and another investor. The conclusion of the transaction will significantly improve Alviva’s B-BBEE shareholding.

"We are proud to have partnered with Alviva on this transaction as it not only supports our vision to support transformational deals, but also showcases our ability to provide a full suite of services to our clients,” says Christopher Biggs, Director, M&A Advisory at Absa CIB.

The transaction included a cash offer of up to R2.562 billion supported by multi-tranched acquisition facilities to acquire all of the Alviva shares that are not already owned by the consortium of investors, the offer of which was made by way of a scheme of arrangement. In addition, Absa will be supporting the business with operational funding facilities to the value of R800m.

Absa will also become the primary banking partner for Alviva post this transaction. 

Pierre Spies, CEO at Alviva says: “This landmark transaction aligns with our vision and will result in Alviva, which is one of the largest diversified ICT groups, becoming a majority black-owned and privately held company, repositioning the company to drive the strategic direction of the business for future growth and expansion.”

This deal not only highlights Absa’s commitment to empower businesses with solutions that underline sustainable economic transformation, but also showcases a keen understanding of the opportunities in the South African technology sector.

“Meaningful black participation, including ownership, at all levels of the South African economy should be a priority to ensure sustainable socio-political, financial, and economic stability in South Africa. We look forward to continuously driving economic transformation with innovative, fit for purpose solutions in South Africa, as well as the wider African continent,” concludes Biggs.