| LONDON, April 10
LONDON, April 10 Investment banking fees in
sub-Saharan Africa fell 60 percent in the first quarter of 2012
from the previous year, as dealmaking suffered in the wake of
the euro zone debt crisis, according to Thomson Reuters
Fees from regional mergers and acquisitions and equity and
debt issuance totalled $71.9 million in the first three months
of 2012, compared with $181 million in the same period in 2011.
It was also the slowest quarter for fees since the fourth
quarter of 2009.
The slump reflected a depressed quarter for M&A activity,
with $3.7 billion worth of deals targeting sub-Saharan African
companies, a 39 percent drop from a year earlier.
"It's been a slow start in general globally," said Thomson
Reuters deal intelligence analyst Lucille Quilter.
"Deal making has really been hindered by the fallout from
the European sovereign debt crisis ... Everything really has
been put on hold, in particular M&A."
Eurasia Natural Resources's $1.25 billion acquisition of
First Quantum Minerals' residual assets and claims in
the Democratic Republic of Congo was the biggest M&A deal in the
region during the quarter.
South Africa, the continent's biggest economy, was the most
targeted country for M&A, with $1.8 billion, or 47 percent of
the activity, followed by Congo with 34 percent.
British and South African companies were the most
acquisitive, accounting for 47 percent and 36 percent of the
The analysis also showed that equity issuance declined 41
percent to $1.2 billion. There were no initial public offerings
from sub-Saharan African issuers.
The largest equity issue was a $585 million convertible bond
from South Africa's Shoprite Invest, while follow-on activity
amounted to $657 million.
Debt issuance was also subdued, with five issues totalling
$3.4 billion, less than half the $7.2 billion reached in the
first quarter of 2011. South Africa's $1.5 billion 12-year
Eurobond, issued in January, was the largest. The other issuers
were the African Development Bank and African Bank.
U.S. bank Morgan Stanley was the top overall fee earner,
generating $8.4 million, a 12 percent market share, compared
with its fifth place ranking last year when it had a 6 percent
market share. Goldman Sachs came second with $7.2 million.