Connect with us


How financiers forced Actis to sell stake in C&I Leasing – MD



Peace Mass Transit in January acquired a majority stake in C&I Leasing following the decision of the investor, Actis Nigeria, to exit the company.

The investor had approached other existing investors to trigger its exit from the firm.

It was gathered that Actis, also known as Neoma Africa Fund, was compelled to sell its shares in C&I Leasing due to limited time on their investment.

Ripples Nigeria recalls that Actis exit from C&I Leasing freed 313,326,316 units of shares for purchase and this was eventually acquired by Peace Mass Transit.

The Managing Director of C&I Leasing, Andrew Otike-Odibi, who spoke on the matter in a chat with our correspondent, said development gives Peace Mass Transit 55.82 percent shares in his company.

He stressed that Actis was no longer in a position to remain as an investor in C&I Leasing after selling its stakes in the company.

He said: “Peace Mass Transit, first of all, has been a shareholder of C&I Leasing and a Director of C&I Leasing.

READ ALSO: C&I Leasing, Linkage Assurance, Okomu Oil top Ripples Nigeria stock watchlist

“Actis is a logical top fund that needed to exit because if you understand the way the venture capital funds operate, they have a time limit for their investment and they have to exit at a point and return funds to their investors.

“At the point of exit, Actis approached the existing shareholders and directors and asked to find out if anyone or party was interested in taking up their slot. Peace Mass Transit was ready and took advantage of the opportunity and in doing that, we see it as a very positive move.”

Actis is an investment venture with an appetite for the African market. It was created in 2004 after the United Kingdom-based CDC Group was restructured. The company has invested in Nigerian firms such as Africa Oilfield Services/AOS Orwell Limited, Computer Warehouse, as well as Custodian and Allied Insurance Plc.

The exit of Actis means that the funder’s investment in C&I Leasing will be written down as equity, as it was previously classified as debt.

“This transaction will strengthen the capital base of the company and improve clarity of the capital structure,” C&I Leasing said in a statement shared to the Nigerian Stock Exchange (NSE).

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

fifteen − 14 =