Published: April 13, 2011
Prices down but volume leaps 30%.
The value of deals targeting South Africa-based companies fell during the first quarter of 2011 despite an increase in volume, according to M&A data provider Zephus.
There were 86 transactions worth a combined US$3.7bn in the first quarter, 31% lower than the US$5.4bn recorded during same period in 2010. But volume was up by almost a third showing that valuations have fallen in Africa’s largest economy.
The largest transaction by value was property investor Growthpoint’s US$1.3bn acquisition of Lexshell, which accounted for more than a third of the quarter’s value.
There was just one private equity deal in the first quarter, which was Standard Chartered Private Equity’s US$20mn deal for farming, agriculture and fruit export group Agrifresh, which specialises in grapes, raisins and wine.