An investor group led by Helios Investment Partners (“Helios’), a leading pan-African private equity firm, and including Citi Venture Capital International, RMB Corvest and MSG Afrika Investment Holdings, announced today that it has concluded the acquisition of INM Outdoor (Pty) Limited (“INMO’), the largest outdoor advertising company in Africa, from Independent News Media (South Africa) (Pty) Limited (“INM’) for a total consideration of ZAR 1,100 million (US$145 million).
The acquisition is one of the largest disclosed private equity transactions in Sub-Saharan Africa this year.
With operations in South Africa and 13 additional countries in Sub-Saharan Africa, INMO offers its customers unparalleled access to a network of over 38,000 advertising opportunities. INMO is well known for its commitment to innovation, corporate social responsibility, and superior customer service. INMO’s management team will be led by Barry Sayer, who has recently rejoined INMO as Chief Executive Officer following three years as the CEO of Clear Channel UK Ireland. Barry will work closely with Managing Director, Bazil Lauryssen, and the rest of INMO’s management team, with whom he has a long track record of success in the African outdoor advertising industry.
The investor group is composed of seasoned, successful African investors with deep industry experience. In addition to Helios, the investor group includes Citi Venture Capital International (“CVCI’), a leading global emerging markets private equity investor, and RMB Corvest, one of South Africa’s most well-established private equity firms. The investor group aggregates committed capital exceeding US$7 billion, and has a proven track record of successful investments in Africa and the outdoor advertising industry.
Investec Capital Markets served as the mandated debt financier in respect of the acquisition.
As an important part of the transaction, MSG Afrika Investment Holdings (“MSG’), a black-owned investment firm, has acquired a 25.1% stake in INMO’s South African subsidiary. As a result of MSG’s investment, and a number of other Broad-Based Black Economic Empowerment (“BBBEE’) initiatives, INMO’s South African subsidiary is expected to become a Level 4 BBBEE Contributor and attain a BBBEE procurement recognition level of at least 100%.
The transaction represents another major step forward for INMO, its advertising agency partners and its corporate customers. By combining the investor group’s financial strength and experience with the management team’s operational expertise, INMO will build on its longstanding position as the most experienced, operationally capable and best capitalized outdoor advertising company in Africa.
