Fairfax Africa Holdings Corporation has reached an agreement to merge with Helios Holdings limited, the Africa-focused private equity firm, Helios Holdings Limited. The purpose of the merger is to create a truly pan Africa focused alternative investment firm
According to a statement made available by Fairfax, when the deal is finalized, which is expected to occur in the third quarter of this year, Fairfax Africa Holdings Corporation will be renamed Helios Fairfax Partners Corporation. The company will remain listed on the Toronto Stock Exchange and the Helios co-founders will be joint Chief Executives of the new company.
Completion of the Transaction is subject to customary conditions, including receipt of applicable regulatory approvals, the approval of the Toronto Stock Exchange, and approval by Shareholders.
The terms of the deal will also require Helios to exchange 45.9percent of equity and voting interest in the new company. Helios will contribute its performance and management fees through its present and future holdings under the Helios funds, thereby making Helios Fairfax Partners Corporation one of the biggest Africa-focused asset management firms by complementing the experiences and funds of both companies under one umbrella.
The new company will also have a larger capital base for diversified investment inflows to the continent through years of experience in third-party investment management operations and the support of longer-term institutional shareholders.
The main objectives of this deal are Helios Fairfax Partners Corporation would become the leading panAfrica focused listed alternative asset manager with unique capabilities to invest across the continent; the deal would create a diversified investment platform combining best in class third-party investment management capabilities with the strength of long-term shareholders in a permanent capital vehicle; provides an enlarged capital base, increasing capacity to invest as well as to launch additional and differentiated Africa focused asset management strategies and initiatives; reinforces the parties’ shared long- term commitment to be a consistent and trusted provider of capital to growing African businesses across market cycles; Tope Lawani and Babatunde Soyoye, the cofounders and Managing Partners of Helios Investment Partners LLP, will become joint CEOS of the combined holding company, enabling the company to build on the track record they have established over the last 15 years
Tope Lawani disclosed that the deal will offer emerging market investors the opportunity to gain exposure to the continent through their portfolio.
“We take a long- term view on our investments, and many have proved resilient even in this pandemic with a number of our investments in sectors such as telecommunications, payments, and food,” Lawani said.