Actis, a private capital investment firm, has successfully exited its stake in C&I Leasing Plc (C&I Leasing), through a trade sale to Peace Mass Transit Limited (Peace Mass Transit), a leading transport company in Nigeria with interests in Banking, Oil and Gas, Pharmaceuticals, Agro Chemicals and Auto Assembly.
Actis invested in C&I Leasing in 2010. The terms of the loan stock from C&I Leasing, gave Actis an option to convert the instrument to equity. The emerging market investor has now reached a deal with Peace Mass Transit to sell the loan stock with all the rights. This therefore gives Peace Mass Transit an opportunity to convert the loan stock into equity and become the single largest shareholder in the company.
In a statement, Dr. Sam Maduka Onyishi, Chairman and Managing Director/Chief Executive Officer, Peace Mass Transit, said the decision to invest in C&I Leasing “is a no-brainer,” judging from the company’s remarkable growth trajectory in marine logistics and its other business lines.
“We have seen the value in C&I Leasing, hence it is a no brainer that we opted to buy out the loan stock from Actis, in a deal which we are confident will yield the expected return on investment.”
Also commenting on the transaction, Andrew Otike-Odibi, Managing Director and Chief Executive Officer of C&I Leasing, said: “As a viable business with a solid investment proposition and consistent growth in the last 30 years, we strive to increase our momentum to ensure positive return on investment to investors both in the short and long run,” adding that “this strategic deal is evidence of a well matured investment portfolio and in line with stakeholder expectations.”
Reassuring shareholders, the C&I Leasing MD further said: “With Peace Mass Transit in the picture, I am very confident about the path of an enhanced equity base. The loan stock conversion will create opportunities to raise equity as new shareholders will have a level playing field to invest in a business with a proven track record of success. This will further impact positively on shareholders’ value.
Peace Mass Transit’s increased investment in C&I Leasing is a glowing testimony to the fact that the company is in good standing, attractive, competitive, holding good prospects and primed to harness future opportunities in its core areas of operations while stabilizing its capital structure.