* M&A deals jump by a third to $30.3 bln
* Most are in energy, materials sector
* Mozambique most-targeted country for M&A
* Sub-Saharan debt issuance at record high
LONDON, Jan 16 The value of merger and
acquisition deals targeting sub-Saharan African firms jumped by
almost a third last year to $30.3 billion, while debt sales from
the continent hit a record high, data from Thomson Reuters
showed on Thursday.
African companies are attracting increasing investor
attention due to the spending power of the rising middle class
on the fast-growing continent and expansion of its natural
resources sector, which is drawing investment from China
and other countries.
The data showed that the most targeted M&A country by value
in 2013 was Mozambique, due to three oil and gas sector deals
with a total value of $9.3 billion. South Africa, Nigeria,
Tanzania and Angola were also in the top five.
South Africa and China were the most acquisitive nations,
together accounting for 46 percent of purchases. Indian
companies were also active in buying sub-Saharan African firms.
Most M&A deals are however concentrated in the energy and
materials sector, which accounted for more than $22 billion of
the $30.3 billion in announced transactions, according to the
data from Thomson Reuters Deals Intelligence.
On the debt front, African borrowers have also come to
market to take advantage of historically low yields and strong
investor appetite, with countries such as Tanzania, Ghana and
Rwanda marketing successful dollar bonds in 2013.
That trend is set to continue this year, with Kenya and
Ivory Coast among those planning dollar bond issues.
Sub-Saharan African debt issuance totalled $20.7 billion
last year, up 66 percent from 2012, with South Africa the most
active issuing country, Thomson Reuters said.
But equity and equity-linked issuance dropped 3 percent from
2012 levels, to $3.5 billion.
Investment banking fees for sub-Saharan Africa investment
banking services also fell, down 2 percent to $354.5 million.
But debt capital market underwriting hit a record high of
$83 million, and equity capital markets underwriting fees rose
27 percent to $90.1 million.
(Reporting by Carolyn Cohn; Editing by Susan Fenton)