2015 in Perspective

5 ANNUAL EAST AFRICA FINANCIAL REVIEW 1 0 D E A L S | E Q U I T I E S | T R E N D S | E C O N O M I C S | F O R E C A S T S 2

Our Sponsoship Partners 2015 IN PERSPECTIVE

2015 Year in Review BC Deal of the Year

London-based Africa focused investment firm Helios sold half its stake (12.223%) in NSE-listed lender Equity Bank to Edward Burbidge, CFA Norwegian investment firm Norfininvest AS - a joint venture investment company C H I E F E X E C U T I V E O F F I C E R between Norfund and NorFinance AS - for an undisclosed amount. Helios bought a 24.45% stake in Equity in 2007 It was another heady year of dealmaking, and if not for a public equity markets correction in the second half of the year, the total value of disclosed deals would have been for more than KES 11 billion (USD 120.2 million). significantly higher than last year, instead of in-line at $3.9bn. As the total number of deals decreased this means of course that the average deal size increased. This is no surprise, and is a trend that we expect to continue. 2015 in Numbers This year a lot will depend on the macro picture, which is a little confused at present (we hope you benefit from our research team’s economic outlook) but we expect the region to continue to be extremely attractive for investments – likely considerably more The largest corporate deal in EA attractive than the resources dependent regions of the continent. Please see below our in USDm thoughts on the likely deal activity. 845 PE and M&A in Brief There were 40 PE investments publicly announced in 2015, which was a 14.3% increase from the 35 deals in 2014. As we predicted, there has been an increase in the number The no. of disclosed M&A deals in EA of PE exits as first time funds mature to that stage of the cycle. A total of 11 PE exits 51 (>120% increase from 5 exits recorded in 2014) were witnessed in 2015, four of which were secondary buyouts. The value of PE investment deals announced in 2015 more than doubled what was recorded in 2014 with a value USD 1.44bn up from USD 678m. The average PE deal size was USD 46.5m up from USD 34.4m in 2014 representing a The no. of disclosed PE deals in EA 35.3% rise. This was in line with our forecast and we believe this growth can be 40 sustained going into 2016. The largest PE investment deal in 2015, which happens to be BC’s deal of the year, was the exit of London-based Africa focused investment firm Helios EB Investors LP from NSE-listed lender Equity Bank to Norwegian investment The increase in the firms Norfund and Norfinance AS (a joint venture investment company between number of PE exits in Norfund and Norwegian private investors) at USD 248 million for a 12.22% stake. Helios EA +120% further exited 5.58% and 2.44% stakes to Kenya’s and Uganda’s public provident funds for USD 92 million and USD 46.5 million respectively with the balance of 4.207% offloaded through the secondary market. Helios had acquired the 24.45% stake in Equity in 2007 for c. KES 11 billion (USD 120.2 million). The total no. of all disclosed corporate deals in EA In M&A a total of 51 deals were recorded across all sectors in EA in 2015 representing a 119 marginal increase (+6.3%) from 48 deals in 2014. However, the value of M&A deals reported dropped marginally in 2015 to USD 864m from USD 947m recorded in 2014 (-8.8% y/y) while the average M&A deal size was USD 33.3m which was a slight decrease The total value of all from USD 35.3m that was noted in 2014. The three leading sectors in M&A activity in disclosed corporate deals 2015 were the banking sector with 9 deals followed by manufacturing (7 deals) and in EA in USDm agribusiness (4 deals). As we predicted, the financial services sector (banking, insurance, 3,866 investment services) maintained the lead in the number of consolidations in the EA region with a record of 16 deals. We do not foresee a shift from this trend in 2016. In This Issue

Key Market Indicators BC Economic Outlook 2016 2015 Deal Statistics Selected Deals Summary

A N N U A L R E V I E W 2 0 1 5 | 0 1 Natural Resources & Energy

2015 was a low year for the natural resources sector in East Africa as investor interest decreased, with around half the number of deals announced compared to 2014. The number of deals reduced to 23 in 2015 with Kenya accounting for almost 50% of the total deals recorded in the sector.

The oil and gas sector led the pack after it recorded 9 of the total deals in 2015 (14 in 2014). The oil sector headlined with exploration firms such as Africa Oil, Simba Energy and Pancontinental raising funds through private placement transactions to facilitate their projects in the region - as the low oil prices continued to engulf the sector. The largest transaction in the sector was Africa Oil’s farmout of half of its explorations As we licences in Kenya and two in Ethiopia to Maersk Oil for USD 845 million.

The mining sector witnessed 7 deals in 2015 compared to 19 deals in 2014 (-63% y/y) predicted, mainly in the form of M&A, farm outs or private placements transactions. The largest transaction in this sector was Israel Chemicals Ltd. (ICL) acquisition of a majority stake the financial (83.78%) in Allana Potash Corporation for USD 137 million in Ethiopia.

The energy sector recorded an increase to 5 deals in 2015 compared to 3 in 2014 as services sector PE investments formed the majority of deals in this sector. MKOPA secured a total of USD 31.5 million in form debt and equity from a consortium of PE and VC investors in (banking, two separate transactions. The petroleum sector recorded the least number of transactions compared of all the natural resources subsectors although a notable development was Ethiopia and Djibouti’s agreement to construct a 550km refined insurance, petroleum products pipeline estimated to cost USD 1.55 billion linking the two countries. investment Listed Equities in Brief The Nairobi Securities Exchange experienced a sustained bear run with the NSE 20 services) recording a decline of 20.9% to close at 4040.75 points while the NASI registered a drop of 10.6% outperforming the MSCI Frontier Markets Index which fell by 12.6%. Regionally, the NSE performed poorly compared to the DSE All Share index and the USE All Share maintained the Index that fell 7.4% and 8.5% respectively. The bourse observed net foreign outflows of USD 6.6 million, a drop from last year’s net foreign inflows of USD 86.2 million as lead in the investors sought to mitigate against a weakening currency and fall in stock prices with about 15 companies issuing profit warnings. The bourse annual turnover fell to USD 2.0 bn from 2014’s USD 2.4 bn. The top losers were Transcentury (57.4%) and ADSS (82.6%) number of which were adversely affected by the downturn in the oil exploration sector. Notably the small- mid cap counters constituted the leading gainers in the year led by Sasini (52.1%), consolidations in Kenya re (23.2%) and NSE (20.7%). The first half,of the year witnessed successful capital raising through corporate bonds and rights issues before domestic borrowing activities by government provided a more attractive alternative through short dated bills in the the EA region second half during which the 91-day T-bills rate rose to a maximum of 22.0% in October. The NSE launched a REITS market with the listing of the Stanlib Fahari I-REIT offering with a record of investors more diversification options. The NSE expects to list two more REITS in the first quarter of 2016. 16 deals.

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Practitioners of the craft of private banking

EFG is the marketing name for EFG International and its subsidiaries. EFG International’s global private banking network includes offices in Zurich, Geneva, London, Channel Islands, Luxembourg, Monaco, Madrid, Hong Kong, Singapore, Shanghai, Taipei, Miami, Nassau, Grand Cayman, Bogotá and Montevideo. www.efginternational.com KEY MARKET INDICATORS

Key Africa & Global Equity Indices Performance Equity Index 31-12-14 Year low Year high 31/12/2015 % Ch. y/y NSE 20 (KE) 5,112.65 3,829.91 5,499.64 4,040.75 -20.97% FTSE NSE Kenya 25 216.42 173.70 237.00 186.30 -13.92% DSEI (TZ) 2,519.64 2,291.27 2,850.15 2,334.00 -7.37% ALSIUG 1,927.00 1,924.69 2,098.00 1,764.00 -8.46% NGSEINDEX 34,657.15 26,476.17 35,843.39 28,642.25 -17.36% EGX 30 8,926.58 6,302.05 10,066.11 7,006.01 -21.52% JALSH (SA) 49,770.60 46,530.87 55,355.12 50,693.76 1.85% S&P 500 2,058.90 1,867.01 2,134.72 2,043.94 -0.73% FTSE 100 6,566.09 5,768.22 7,122.74 6,242.32 -4.93%

Key Africa & Global Currency Performance Currency 31-12-14 31-12-15 % Ch. y/y KES / USD 90.52 102.20 -12.90% TZS / USD 1,737.61 2,155.00 -24.02% UGX / USD 2,783.96 3,367.00 -20.94% ETB / USD 20.21 21.01 -3.96% ZAR / USD 11.71 15.46 -32.06% NGN / USD 183.21 199.00 -8.62% EGP / USD 7.15 7.83 -9.46% GBP/USD 0.65 0.68 -4.45% EUR / USD 0.83 0.92 -10.49%

Interest Rates Country/Region 31-Dec-14 31-Dec-15 Ch. y/y (bps) Central Bank of Kenya (Kenya) 8.50% 11.50% +300 Bank of Uganda (Uganda) 11.00% 17.00% +600 Bank of Tanzania (Tanzania) 7.58% 7.58% 0 South African Reserve Bank (RSA) 5.75% 6.25% +50 Central Bank of Nigeria (Nigeria) 13.00% 11.00% -200 Central Bank of Egypt (Egypt) 9.25% 8.75% -50 Bank of England (UK) 0.50% 0.50% 0 Federal Reserve Bank (USA) 0.25% 0.50% +25 European Central Bank (EU) 0.05% 0.05% 0

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Growth uptrend in 2016

Sustained infrastructure spending, a stable shilling and monetary policy support moving into 2016 will likely support our expectations of a continued growth uptrend in the year. We anticipate the economy to realise a 5.3% - 5.7% growth rate in 2016 and the equity markets to record a gradual recovery from the bear run experienced in FY2015. Downside risks will likely come through from subsequent fed rate hikes that will likely have a significant effect in the form of capital outflows from the local markets with the dollar strengthening respectively. Further, as we approach the General Elections, the private sector will likely cut back on spending as uncertainties surrounding elections generally derails investment decisions. However, pre-election campaign spending is expected bolster economic activity towards the close of 2016 and in 2017.

2015 GDP growth forecast by the IMF and Treasury of 6.5% was largely pegged on infrastructure spending - rail, road, port development and agriculture, a later downward revision of the forecast to 5.6% and 6.0% respectively was then based on delayed take off in some infrastructure projects, weakened tourism and volatile external capital flows. On this background we anticipate the economy to have realised a modest growth of 5.4% to the 5.2% registered in a similar period in 2014, based on the average growth of the first three quarters. We highlight, economic activity in 2015 was largely stifled by a weakened shilling and sluggish exports aggravated by a continued decline in tourism. Further, net foreign outflows observed from the equity market piled pressure on the already weakened shilling. The re-introduction of capital gains tax in January 2015 coupled with a strong dollar prompted the exits by foreign investors in 1H2015.

Relative price stability

The Kenyan economy maintained relative price stability with the inflation rate remaining within the Central Bank’s target range of 2.5% - 7.5% with the exception of December. In the month, headline inflation shot to 8.0% as the food and non-alcoholic & beverages index increased by 13.3% y/y and Monthly Inflation 2015 8.0% the Alcoholic Beverages, Tobacco index gained 15.0% y/y as a

7.3% result of an increase in excise duty prices of beer and 7.1% 7.0% 6.9% 6.6% 6.7% cigarettes. We expect the inflation rate to remain within CBK’s 6.3% target range supported by low fuel and energy prices. Global oil 5.8% 6.0% 5.5% 5.6% prices dropped to below USD 30/barrel in Jan 2016, the lowest recorded since 2003.

15 15

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M Monetary Policy easing bias in 2016

FY15 saw the Kenya shilling depreciate 12.9% against the dollar reaching a low of KES106.1/USD in September from a high of KES 90.6/USD in January. The shilling’s depreciation resulted from a widening BOP position and the strengthening of the US dollar - largely driven by economic recovery in the US brought an end to the quantitative easing- and ECB’s implementation of the QE programme. In a bid to stem the shilling’s depreciation, the Central bank of Kenya increased the CBR by 300 bps in 2015 from 8.5% to 11.5%. Regionally, the shilling fared better than the Ugandan and Tanzanian currencies which declined by 20.9% and 24.0% respectively against the dollar in FY2015. Regional currencies performance 20% against USD FY15 Taking into account the current interest and inflation parity 10% mismatches, we expect the shilling to remain stable albeit above 0% the KES/USD 100.0 mark in the short term, depreciating marginally -10% by c. 2.0% - 3.0% in the next 3 months. Thus, in view of a stable -20% exchange rate and relative stability in prices, we expect the CBK to -30%

hold the CBR at the current level in 1Q2016 while monitoring -40%

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inflation and tend towards an accommodative stance in 2Q2016 to b-

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KES/USD UGX/USD TZS/USD ECONOMIC OUTLOOK 2016

support private credit expansion. In 2H15 credit expansion slowed down to 20.8% in September 2015. Similar period growth of 24.5% was observed in September 2014.

Balance of Payments: widening deficit

2015 recorded an expanding trade deficit over the first three quarters resulting from a decline in the value of total exports as well as net capital outflows. The government’s infrastructure development has led to massive spending on imported capital goods while tourism remains sluggish in the face of negative travel advisories. A drop in tea production in Kenya reduced export volumes however, a 300.0 Current Account, KES bn strong US dollar supported value growth as income from the 250.0 200.0 sector in the 9 months surpassed FY2014. 150.0 100.0 50.0 With oil prices expected to remain below USD 50/ barrel as 0.0 -50.0 an oil supply glut persists in the global markets, we anticipate -100.0 -150.0 a lower import bill (-33.8% y/y change to September 2015) -200.0 -250.0 and healthy inward remittances to support the BOP position -300.0 while capital goods demand exerts pressure as 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Merchandise Trade Service Income Remmitances infrastructure spending accelerates.

Eurobond yield volatility

The Kenyan Eurobond experienced volatility towards the end of the year with reports of misappropriation of borrowed funds coming to light. The yield on the 10-year bond rose from 5.76% in September 2014 to a high of 9.74% in January 2016. Similarly, the 5-year bond which matures in 2019 spiked higher to 8.62% in Jan. 2016 from 4.83% levels in September 2014.

10.000 Kenya's Eurobond yield S & P affirmed the country’s rating at B+ in October 2015, placing performance 9.000 it at the speculative grade, with the negative outlook for Kenya based on a weakening fiscal position at greater than the 8.26% 8.000 realised in the fiscal year 2014/2015 (2015/2016 forecast of 8.70% 7.000

fiscal deficit) and rising debt burden (includes the USD 2 billion 6.000 Eurobond, the USD 750 million syndicated loan received in FY15 5.000 and other loan agreements with China directed towards the

completion of infrastructure projects). At the current yields, local 4.000

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D D A increasing burden while the unattractive pricing puts off new A 10-year 5-year issues. Source: (Thomson Reuters, BC research)

Despite the Government announcing plans to tap into the Eurobond markets to ease pressure from the domestic debt markets, we anticipate continued volatility in interest rates as this will unlikely be executed in the current fiscal year 2015/2016 with rising yields on the Eurobond also making it more expensive to raise foreign currency denominated debt.

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Contacts www.candrgroup.co.ke Kenya Office Uganda Office Head O ce, 6th oor, Bruce House, Standard Street, 4th Floor, DTB Centre, Kampala Road Tel Pilot: (+254) 20 2230518 Fax: (+254) 20 2211773 Tel Pilot: (+256 ) 414 237 504 O ce GSM: (+254) 726 971 599 / 737 095 124 O ce GSM: (+256) 757 072 773 Email for Share Registry & Company Secretarial: Email: [email protected] [email protected] Email for DMS :[email protected] DEAL STATISTICS (1/2)

60 TOTAL NUMBER OF REPORTED DEALS IN EAST AFRICA 51 50 40 40

20 11 7 10 5 6

4 3 3 Value. (USDm) deals Value. of

- M&A deals PE deals Farmouts Corporate Joint Ventures Private PE exits Rights issue IPOs bonds placements (shares) Investment type

2015 2014 2013

NUMBER OF DEALS PER MONTH - 2014 & 2015

20 18 18 16 16 15 14 15 13 14 13 12 12 11 11 9 9 9 10 10 8 8 7 7 6 4 5 4

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015

DEALS PER SECTOR 40 36 35 30 25 20 12 9 15 11 8 9 8 4 3 10 7 5 3 5

TMT

Retail

Energy

Mining

Healthcare

Real Estate Real

Petroleum

Agribusiness

Oil & Gas and Oil&

Automotive

Manufacturing & Manufacturing

Financial Services Financial

Infrastructure

Hospitality and F&B and Hospitality Transport, Logistics & Transport,Logistics

2015 2014 2013 ANNUAL REVIEW 2015 | 08 DEAL VALUES IN USD MILLIONS

1,600 1,441 1,400

1,200 864 1,000 863 897

800

600

400 246 219 119 200 91

- M&A PE Farmouts Private PE exits Corporate Rights issue IPO placements bonds

2015 2014 2013

DEAL ANALYSIS PER COUNTRY

Kenya 2015 2014

Rwanda No. of Deals 83 99 Uganda 2015 2014 Disclosed Deal Values(USD 3231.36 2182.7 No. of Deals 9 10 Mn) 7 Disclosed Deal Values(USD Mn) 79.46 354.6 Average Deal Size (USD Mn) 54.77 34.11

Average Deal Size (USD Mn) 19.87 35.46 Most Active Sector FS FS Most Active Sector FS Agribusiness

Ethiopia 2015 2014

No. of Deals 6 8 Disclosed Deal Values (USD 265.45 233.8 Mn) Average Deal Size (USD Mn) 44.24 46.76 Most Active Sector Mining Agribusin- ess

Rwanda 2015 2014 2015 2014 No. of Deals 4 4 Tanzania Disclosed Deal Values (USD 62 20.7 No. of Deals 13 15 Mn) Disclosed Deal Values(USD Mn) 172. 599.25 Average Deal Size (USD Mn) 31 10.35 9 Most Active Sector FS FS Average Deal Size (USD Mn) 24.7 39.95 FS = Financial Services Most Active Sector FS Mining Mn = Millions SELECTED PE DEALS IN EAST AFRICA– 2015 (1/5)

There were 40 PE investments publicly announced in 2015, which was a 14.3% increase from the 35 deals in 2014. As we predicted, there has been an increase in the number of PE exits as first time funds mature to that stage of the cycle. A total of 11 PE exits (+120% increase from 5 exits recorded in 2014) were witnessed in 2015, four of which were secondary buyouts. The value of PE investment deals announced in 2015 more than doubled what was recorded in 2014 with a value USD 1.44bn up from USD 678m. The average PE deal size was USD 46.5m up from USD 34.4m in 2014 representing a 35.3% rise. This was in line with our forecast and we believe this growth can be sustained going to 2016. The largest PE investment deal in 2015, which happens to be BC’s deal of the year, was the exit of London- based Africa focused investment firm Helios EB Investors LP from NSE-listed lender Equity Bank to Norwegian investment firms Norfund and Norfinance AS (a joint venture investment company between Norfund and Norwegian private investors) at USD 248 million for a 12.223% stake. Helios further exited 5.58% and 2.44% stakes to Kenya’s and Uganda’s public provident funds for USD 92 million and USD 46.5 million respectively with the balance of 4.207% offloaded through the secondary market. Helios had acquired the 24.45% stake in Equity in 2007 for more than KES 11 billion (USD 120.2 million).

Investment Date Buyer Seller Investment size Sector type Country Synopsis 19th January 2015 Norfund and Helios Investment c. KES 23 billion Banking Secondary Kenya London-based Africa focused investment firm Helios sold half its Norfinance AS Partners (USD 248 million) buyout stake (12.223%) in NSE-listed lender Equity Bank to Norwegian investment firm Norfund and Norfinance AS - a joint venture investment company between Norfund and Norwegian private investors - for circa USD 248 million. Helios bought a 24.45% stake in Equity in 2007 for more than KES 11 billion (USD 120.2 million). 29th January 2015 Phatisa General Plastics Manufacturing PE Kenya Phatisa's USD 246 million African Agriculture Fund acquired a Limited ignificant stake in General Plastics Limited, a Nairobi-based leading manufacturer of packaging products for the food, beverage and agro-chemical sectors in Kenya and the broader EA region. 30th January 2015 Swedfund, Radisson Blu Hotel KES 7 billion Hospitality PE Kenya Four Scandinavian PE firms backed the developer of the KES 7 Finnfund, IFU & (USD 75.3 million) billion Radisson Blu Hotel located in Nairobi’s Upper Hill. Norfund Swedfund took a 21.3% stake in Elgon Road Developments Ltd – the SPV behind the 5-star hotel. Finnfund and Danish investment fund IFU each have a 10% stake in the development while Norfund provided part of the KES 811.8 million loan advanced to the project through Afrinord, a JV fund backed by four Nordic countries. 3rd February 2015 LGT Venture M-KOPA KES 1.2 billion Energy VC Kenya Kenya's solar financier M-KOPA raised KES 1.2 billion from a Philanthropy, (USD 12.5 million) consortium of investors to fund its local and regional expansion. Lundin The funds were raised from existing and new investors led by LGT Foundation & Venture Philanthropy, a Liechtenstein-based impact investor, Others Lundin Foundation, Treehouse Investments and Blue Haven Initiative in both debt and equity. 10th February 2015 Pantera Capital BitPesa USD 1.1 million Financial VC Kenya Nairobi-based global remittance firm start-up BitPesa raised USD & Others services 1.1 million in a second round of funding led by San Francisco-based Pantera Capital. Other investors included Crypto Currency Partners, Stephens Investment Management, Bitcoin Opportunity Corp., and Future (Perfect) Ventures. 12th February 2015 Ascent Capital Medpharm USD 2.5 million Pharmaceutical PE Ethiopia Nairobi-based PE firm Ascent Capital invested USD 2.5 million in an Holdings Africa Ethiopian medical diagnostic laboratory company, Medpharm Holdings Africa, in its maiden deal. Medpharm Holdings Africa is a holding firm for medical diagnostic laboratories that operates International Clinical Laboratories in Ethiopia. 24th February 2015 8 Miles Keystone Bank / Banking PE Uganda Bob Geldof's African-focused PE fund 8 Miles acquired a 42% stake Orient Bank in Orient Bank, a mid-tier Ugandan commercial bank to tap into a growing economy and a largely unbanked population. 8 Miles bought the stake from Nigeria's Keystone Bank, a state-owned Nigerian bank. The investment was made alongside the founders of the bank, who have increased their stake in the bank to 49%. 2nd March 2015 LeapFrog AFB Mauritius Ltd USD 25 million Financial PE Mauritius / Africa and Asia focused PE firm LeapFrog Investments bought a Investments Services Kenya minority stake in financial technology company AFB Mauritius Limited for USD 25 million in the fourth deal for its Fund II. AFB is a disruptive financial services business that gives consumers and SMEs mobile-phone access to insurance, savings and credit products. AFB operates in 4 African countries including Kenya, Zambia and Ghana.

ANNUAL REVIEW 2015 | 11 SELECTED PE DEALS IN EAST AFRICA– 2015 (2/5)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 2nd March 2015 Amethis CIEL Finance c. USD 19 million Financial PE Mauritius Paris-based private equity fund Amethis Finance acquired a 17.1% Finance Limited services stake in CIEL Finance for circa USD 19 million. CIEL Finance is a newly created banking and financial services arm of CIEL Group, one of Mauritius’s leading diversified family businesses. Amethis Finance was intending to further increase its stake in CIEL Finance Limited to 24.9% during 2015, in parallel to the transfer under CIEL Finance of CIEL Limited’s participation in BNI Madagascar. 11th March 2015 Emerging KCA University, USD 17.5 million Higher PE Kenya The Institute of Certified Public Accountants of Kenya (ICPAK) Capital Partners ICPAK education members approved ICPAK-KCAU-Maarifa partnership that allowed KCA University (KCAU) to enter into a long-term strategic partnership with Emerging Capital Partners and Maarifa Edu Holdings Ltd. In the strategic partnership, Maarifa was seeking to initially invest a minimum of USD 17.5 million in KCAU. 7th April 2015 Aviation Centum KES 14.3 billion Real estate PE Kenya NSE-listed Centum Investment’s Two Rivers Development Industry Investment (USD 155 million) attracted USD 155 million (KES 14.3 billion) in new funding, Corporation of including one of the biggest equity investments in a Kenyan China (Avic), company by a Chinese firm. Aviation Industry Corporation of China ICDC (Avic) invested USD 70 million in Two Rivers for a 38.9% stake, valuing the project at circa KES 16.6 billion. State-owned investment firm ICDC, which owns 23% stake in Centum, made a USD 5 million equity investment while Co-operative Bank contributed KES 7.2 billion in debt funding for the project. 10th April 2015 Fanisi Capital European Foods KES 193.2 million Food & PE Kenya PE firm Fanisi Capital invested USD 2.1 million in Nairobi-based Africa Ltd (EFAL) (USD 2.1 million) beverage pizza-maker European Foods Africa Ltd (EFAL) in debt and equity. EFAL, maker of Dr Oetker pizza, was to use the funds to expand processing and distribution of frozen pizzas and whole berries and fresh berry beverages to supermarkets, grocery chains and restaurants in Nairobi and Mombasa. 5th May 2015 Fanisi Capital Live Ad Ltd KES 284 million Advertising PE Kenya Fanisi Capital has taken up a minority stake for KES 284 million (USD 3 million) (USD 3 million) in Kenya's outdoor advertising firm Live Ad Ltd in its first investment in the industry. The investment was to be used to fund a drive to increase Live Ad’s presence across the region. The firm expects to increase the number of billboards it owns over the next four years from the current 200 in Nairobi and other towns across Kenya. 19th May 2015 IFC Kenya Re / Zep-Re KES 1.9 billion Insurance PE Kenya The World Bank investment arm the International Finance (USD 20 million) Corporation (IFC) acquired an estimated 11% stake in the Nairobi- based regional underwriter Kenya Re partly owned reinsurer, Zep- Re, in a KES 1.9 billion deal. Kenya Re shareholding in Zep Re has shrunk to 16% from 20.7% two and a half years ago following the entry of two development financial institutions DEG (11%) and AFDB (14.5%). 11th June 2015 AMS Properties, KES 9.7 billion Real estate PE Kenya Real-estate developer AMS Properties and property marketing Hass Consult & (USD 100 million) firm Hass Consult partnered with a Mauritian private equity firm Xterra Capital Xterra Capital Advisors to develop properties worth KES 9.7 billion Advisors in the region. The agreement will see them raise USD 100 million in equity capital. The development firms would in addition be given preference shares in the fund management company. The property fund will invest in residential, commercial and hotels across Eastern Africa. 24th June 2015 NSSF Uganda Helios EB Investors KES 4.5 billion Banking Partial PE Kenya London-based investment fund Helios EB Investors sold a 2.44% / Equity Bank (USD 46.5 million) exit stake of its ownership in Kenya's Equity Bank to Uganda's pension fund National Social Security Fund (NSSF Uganda) for KES 4.5 billion. The transaction which was valued at KES 50 per share helped Helios to reduce its stake in the bank to 9.78%. The deal put NSSF Uganda on the list of top 10 shareholders of Equity bank.

ANNUAL REVIEW 2015 | 12 SELECTED PE DEALS IN EAST AFRICA– 2015 (3/5)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 2nd July 2015 Centum SABIS® Holdings USD 20 million Education PE Kenya NSE-listed investment firm Centum Investments and Dubai-based Investments, PE firm Investbridge Capital have partnered with SABIS® Holdings, Investbridge a US, Lebanon, and the UAE headquartered global education Capital network, to launch 20 education centres across Africa. The tri- partite consortium will start by building a school in Nairobi before spreading out to other African countries. The envisaged 20 schools will be established over the next 3-5 years, with the cost of building each institution ranging between USD 20 - 30 million. 6th July 2015 Spice Capital Africa Oil USD 5 million Oil & gas PE Kenya, Swiss-based PE firm Spice Capital invested USD 5 million alongside Corporation Ethiopia Helios Investment Partners for a significant minority stake in Toronto and Stockholm-listed East African exploration and production company Africa Oil Corporation. The company has a footprint covering 7 oil blocks across Kenya and Ethiopia and its operating partner is London-listed E&P group Tullow Oil plc. 10th July 2015 Fanisi Capital Kijenge Animal USD 6 million Agribusiness PE Tanzania Private equity firm Fanisi Capital acquired a significant minority Products Limited stake in Arusha-based agro-processing company Kijenge Animal Products Limited (KAPL), for USD 6 million. KAPL is involved in maize milling, animal feed production, poultry (broiler) farming and processing. The funds were to be used to increase the product lines, upgrade its plant and equipment. 27th July 2015 Grofin Café Deli KES 100 million Food & PE Kenya Kenya's coffee shop Café Deli received a KES 100 million capital (USD 1 million) beverage injection from Africa's SME development financier GroFin for expansion to take on the bigger restaurant chains in Nairobi’s central business district. Café Deli had planned to open a new outlet on Nairobi's Kenyatta Avenue in August 2015 as part of the expansion plan aimed at opening four additional restaurants by 2016. 28th July 2015 Norfund Vertical Agro KES 476 million Agribusiness PE Kenya Norwegian private equity fund Norfund made an equity (USD 4.6 million) investment of KES 476 million in Kenya's agriculture firm Vertical Agro. Vertical Agro is the parent company of Sunripe and Serengeti Fresh which makes it the largest exporter of organic vegetables in the country. The company produces 6,500 tonnes of fruits and vegetables annually from its farms in Kenya, Tanzania and Ethiopia. 31st July 2015 Export Trading The Carlyle Group Agribusiness MBO / PE Tanzania Global alternative asset manager The Carlyle Group announced Group founders exit that it had agreed to sell its minority shareholding in Tanzanian Export Trading Group (ETG) back to the management team and founders. In late 2012, Carlyle had teamed up with the Pembani Remgro Infrastructure Fund and Standard Chartered Private Equity, in a USD 210 million first strategic minority investment in ETG, an agricultural commodities supply chain manager based in Tanazania. 3rd August 2015 Overseas Mawingu Networks USD 4 million ICT VC/PE Kenya Kenya’s solar-powered wireless Internet provider across rural Private areas Mawingu Networks recieved USD 4 million expansion capital Investment from US Government’s Development Finance Institution OPIC. Corporation Mawingu is backed by Microsoft’s 4Afrika initiative, USAID, an (OPIC) investment from angel investor Jim Forster, and early funding from Paul G. Allen’s Vulcan Inc. 6th August 2015 National Social Helios Investment KES 9.7 billion Banking Secondary Kenya Kenya’s public provident fund National Social Security Fund Security Fund Partners, Equity (USD 92 million) buyout / PE bought a 5.58% stake in Equity Group from London-based PE firm (NSSF) - Kenya Group exit Helios Investment Partners in a deal that saw the latter complete its exit from the bank. The deal value was circa KES 9.7 billion based on KES 47 per share taking Helios’ earnings from the bank to a total of KES 44.1 billion, quadrupling the KES 11 billion it paid in 2007 to acquire the 24.99 per stake, besides collected dividends totalling KES 6.5 billion, representing a total exit cash multiple of 4.6 times.

ANNUAL REVIEW 2015 | 13 SELECTED PE DEALS IN EAST AFRICA– 2015 (4/5)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 20th August 2015 International Africa Oil USD 50 million Oil & gas PE Kenya TSE-listed oil and gas company Africa Oil announced that it had Finance entered into an agreement to raise USD 50 million from the World Corporation Bank’s private sector lending arm IFC in a private placement for a (IFC) 6.83% stake in the company. The proceeds were to be used to fund the company’s oil and gas exploration, appraisal and development activities in the South Lokichar basin in north-western Kenya where its partner Tullow Oil has in the past struck a series of promising wells. 14th September 2015 Educas LLC AfricInvest KES 3.6 billion Education Secondary Kenya UK-based private equity fund Educas acquired Kenya's Brookhouse (USD 33.6 million) buyout School from pan-African SME-focused PE firm AfricInvest (30% stake) together with other investors. The deal was valued at KES 3.6 billion making it one of the biggest transactions in Kenya’s high- end education sector. Other exiting shareholders included the school’s founder Piyush Mehta (25% stake) and Victoria Bank (20% stake). Founded in 1981, Brookhouse offers the British curriculum to learners from rich and upper middle class households. AfricInvest was part of a consortium of investors that acquired a combined 75% stake in Brookhouse from the Mehta family in 2010. 15th September 2015 CDC Group and Actis,Globeleq KES 23.8 billion Energy Secondary Kenya UK private equity firm Actis exited its Kenyan thermal power Norfund Africa (USD 227 million) buyout interests by selling its stake in Mombasa-based plant Tsavo Power, commonly referred to as Kipevu II, to two foreign investors. Actis sold its 30% stake in Globeleq Africa, the energy company that owns the 75MW Tsavo plant, to CDC Group and Norwegian development financier Norfund for USD 227 million. The plant began generating power in 2001 and signed a 20-year power purchasing plan with Kenya Power. 18th September 2015 Ascent Capital Chims Africa Ltd Mobile money PE Uganda Regional PE firm Ascent Capital acquired a stake in a Kampala- transfer based mobile money agent Chims Africa Ltd, making it the fund’s second deal. Chims Africa is the largest agent operator within the MTN mobile money network, the Ugandan market leader in Mobile Money, with a strong position in rural areas with over 130 outlets across the country. Chims Africa was to use the funds to open an additional 700 mobile cash kiosks in Uganda. Burbidge Capital acted as the transaction advisor to Chims Africa. 21st September 2015 Phatisa Tamarind Real estate PE Kenya Pan-African PE firm Phatisa entered into a deal with real estate Properties developer Tamarind Properties to fund the construction of 140 residential houses in Kenya's Nakuru town. Phatisa was expected to fund the project, known as Nakuru Meadows, through its Pan African Housing Fund (PAHF). The development will sit on 10 acres along the Nairobi-Nakuru Highway. 15th October 2015 Phatisa Kigali Batsinda Real estate PE Rwanda Private equity firm Phatisa (through its Pan African Housing Fund) Estate entered into an agreement with Kigali Batsinda Estate Limited to develop a new residential housing complex (dubbed Izuba City) in Rwanda's capital Kigali. Izuba City is a 300-unit housing complex, featuring a range of options; studios, 1-bedroom starter homes to 3-bedroom family residences. 19th October 2015 Sun European James Finlay Ltd GBP 100 million Horticulture PE Kenya UK-based PE firm Sun European Partners LLP announced that one Partners LLP (USD 145 million) of its affiliates had agreed to acquire Finlays Horticulture Investments Ltd and Finlays Horticulture Holdings Ltd (and its subsidiaries) from Kenya's James Finlay Ltd for around GBP 100 million. The deal included the acquisition of Finlay Flowers UK, Finlays Fresh Produce UK, Finlays Horticulture Kenya, Finlays Horticulture Tanzania, Omniflora, Finlay Flowers BV, FV SeleQt, Dudutech and Finlays Horticulture South Africa. Finlays retained its flower farm business in Kericho, Finlay Flowers, located within its tea estates in Kenya.

ANNUAL REVIEW 2015 | 14 SELECTED PE DEALS IN EAST AFRICA– 2015 (5/5)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 23rd October 2015 Catalyst Jamii Bora Bank Banking PE Kenya Private equity firm Catalyst Principal Partners (CPP) raised its Principal shareholding in Kenya's mid-tier lender Jamii Bora Bank (JBB) Partners bringing their stake to 11% (up from 4.4%) further raising JBB’s institutional and foreign shareholding to over 37%. Other shareholders include two Swedish hedge funds namely Jamii Bora Scandinavia AB and Nordic Microcap. CPP has been buying more shares through the OTC market and has consequently got a seat on the bank’s board. 29th October 2015 Acumen, OPES Devergy Renewable PE Tanzania Social venture fund Acumen partnered with OPES Impact Fund and Impact Fund & energy Heri Africa to invest in Tanzania's solar energy services firm Heri Africa Devergy for an undisclosed amounts. The firm provides village- sized solar powered micro-grid electricity to households and businesses in rural areas not served by the national grid. Devergy uses a “pay-as-you-go” utility model and, to date, has connected more than 800 households on 6 villages. 5th November 2015 Safaricom Sendy KES 22 million IT PE Kenya NSE-listed telecoms firm Safaricom selected Nairobi-based (Spark Fund) (USD 0.2 million) package delivery firm Sendy as the first beneficiary of its USD 1 million Spark Fund, which supports local mobile technology start- ups. Sendy was expected get an investment of up to KES 22 million from Safaricom to help it scale up its business, with the telecoms operator taking a minority stake in the start-up in return. 6th November 2015 IFC GZ Industries KES 8.2 billion Manufacturing PE Kenya The International Finance Corporation (IFC) will make an equity (USD 78.8 million) investment of KES 8.2 billion in a can factory to be set up on the Nairobi-Mombasa highway by Nigeria’s GZ Industries. GZ Industries currently operates two beverage can-manufacturing plants in Nigeria. This is part of an expansion drive will see it open a similar factory in South Africa and acquire the container glass, plastic crate and crown manufacturing operations of Frigoglass in Nigeria and the UAE at a cost of USD 360 million. 10th November 2015 Helios France Telecom Telecoms PE Kenya Private equity firm Helios Investment Partners acquired the entire Investment (Orange Group) / 70% Orange Group's stake in Telkom Kenya for an undisclosed Partners Telkom Kenya amount. Kenya's National Treasury retained its 30% stake at Telkom Kenya. Helios now enters Kenya with a market share of 10.8%, taking over Telkom Kenya’s 3.7 million customers. 20th November 2015 North Base Asoko Insight KES 137 million Business PE SSA Asoko Insight, a provider of corporate intelligence on Africa’s Media and CRE (USD 1.35 million) services growth markets, completed a KES 137 million (USD 1.35 million) Venture Capital fundraising round. The new funds were to be used to deepen Asoko’s research and analysis of more than a thousand privately held companies in Nigeria, Kenya and Ghana, extend operations to new markets and to build the technology behind its digital platform. 27th November 2015 Energy Access Off-Grid Electric USD 25 million Renewable PE Tanzania Paris-based impact-focused venture firm that backs Ventures, DBL energy entrepreneurial companies that bring access to electricity in SSA Investors, Zouk Energy Access Ventures (EAV) announced its inaugural investment Capital, Vulcan in Off-Grid Electric (OGE), a San Francisco and Arusha, Tanzania- Capital and based company. DBL Investors, Zouk Capital, Vulcan Capital & SolarCity SolarCity were other partners in the USD 25 million investment. The funds will help to increase OGE's customer base to 1 million households over the next 2 years and to expand into Rwanda. 2nd December 2015 Generation M-KOPA KES 1.9 billion Renewable PE Kenya Kenya's solar light distributor and financier M-KOPA Solar Investment (USD 19 million) energy announced the closing of a USD 19 million financing round led by Management London-based Generation Investment Management LLP who LLP committed USD 10 million. The new investment from Generation and others will be used to further expand the company’s management team, product range and international operations. The company's aim is to reach its initial target of one million homes in East Africa by end 2017. 30th December 2015 Garage Capital OkHi USD 750,000 IT VC Kenya OkHi, a Kenyan startup which designs physical address systems, received USD 750,000 in funding from local and international investors. US-based Garage Capital and Google’s former chief financial officer Patrick Pichette are some of the investors in the Nairobi-based tech startup. SELECTED M&A DEALS IN EAST AFRICA–2015 (1/6)

In M&A a total of 51 deals were recorded across all sectors in EA in 2015 representing a marginal increase (+6.3%) from 48 deals in 2014. However, the value of M&A deals reported dropped marginally in 2015 to USD 864m from USD 947m recorded in 2014 (-8.8% y/y) while the average M&A deal size was USD 33.3m which was a slight decrease from USD 35.3m that was noted in 2014. The three leading sectors in M&A activity in 2015 were the banking sector with 9 deals followed by manufacturing (7 deals) and agribusiness (4 deals). As we predicted, the financial services sector (banking, insurance, investment services) maintained the lead in the number of consolidations in the EA region with a record of 16 deals. We do not foresee a shift from this trend in 2016.

Investment Date Buyer Seller Investment size Sector type Country Synopsis 27th January 2015 Old Mutual plc Centum, Abraaj USD 250.3 million Insurance M&A and PE Kenya NSE-listed investment firm Centum and billionaire investor Chris Group, AfricInvest exit Kirubi sold their 13.75% and 9.58% stakes, respectively, in UAP & Swedfund Holdings to global insurer Old Mutual for USD 94.8 million. Old Mutual plc agreed to purchase a further 37.3% of UAP’s existing share capital for USD 155.5 million from PE firms Abraaj Group, AfricInvest and Swedfund, thereby increasing its stake to 60.7%. 6th February 2015 GMEX Group ALTX Africa Group Financial M&A Mauritius / GMEX Group acquired a 25% stake in the Mauritius-based ALTX Ltd services Uganda Africa Group Ltd (ALTX) through its GMEX Technologies (GMEX TECH) subsidiary. ALTX wholly owns ALT-Xchange Ltd (ALTX Uganda) and ALT-X Clearing Ltd (ALTX Clearing). ALTX Uganda’s exchange application was accepted by the Ugandan regulator in March 2014. 7th February 2015 Gulf Petrochem Essar Petroleum USD 5 million Petroleum M&A Kenya India-based Gulf Petrochem Group acquired the marketing licence Group East Africa and retail outlets of Essar Oil in Kenya for circa USD 5 million as part of Petrochem's efforts to expand its presence in Africa. The licence was held by Essar Petroleum East Africa, a subsidiary of Mauritius-based Essar Energy Overseas. 9th February 2015 Schneider Power Technics KES 1.6 billion Manufacturing M&A Kenya French electrical products manufacturer Schneider Electric entered Electric (USD 17.2 million) the East African (EA) market after fully acquiring a Kenyan firm, Power Technics Limited. Estimated at KES 1.6 billion, the deal will give Schneider access to the regional market at a time when the EA countries have launched massive energy expansion projects. 16th February 2015 Asian Paints Kadisco USD 18.95 million Manufacturing M&A Ethiopia India’s leading paint manufacturer Asian Paints completed the acquisition of a 51% stake in the Ethiopia-based Kadisco Paint and Adhesive Industry Share Company (Kadisco) for USD 18.95 million. The deal is expected to further consolidate Asian Paints’ presence in the African paint market. The Indian firm had acquired the stake in Kadisco Paint through its indirect subsidiary Berger International Limited (BIL), Singapore. 11th March 2015 Rift Valley Mtemi Resources c. USD 1 million Mining M&A Tanzania ASX-listed metals developer Rift Valley Resources (RVR) acquired Resources Group of a 100% of Mtemi Resources Group, a private group of companies Companies with a portfolio of gold, copper and uranium exploration tenements in Tanzania. 13th March 2015 FTG Holdings Chirag Kenya Manufacturing M&A Kenya NSE-listed FTG Holdings acquired four brands of a snacks and spices manufacturer, Chirag Kenya, in a bid to grow its revenue base. The four brands include Natures Own, Chigs potato crisps, Honeycomb biscuits and Gonuts and had an annual turnover of c.KES 90 million in 2014. The deal is in line with FTG's strategy of creating a diversified FMCG business - manufacturing across Africa and building a portfolio of much-loved African brands. 24th March 2015 Mwalimu Sacco Equatorial KES 2.6 billion Financial M&A Kenya Kenya's billionaire Naushad Merali’s Equatorial Commercial Bank Commercial Bank, (USD 27.9 million) Services buyout by Mwalimu Sacco, the largest sacco in the country, Naushad Merali received regulatory approval. Mwalimu Sacco paid KES 1.6 billion to acquire an immediate controlling stake of 51% in the bank and an additional KES 1 billion for a 24% stake in the second half of 2015. 30th March 2015 Seruji Ltd Savannah Cement, Manufacturing M&A Kenya The Competition Authority of Kenya approved the acquisition of International 60% of the shareholding of Kenya's cement manufacturing firm investors Savannah Cement Ltd by Seruji Ltd. Acoording to Seruji Ltd, the company acquired the stake previously held by the pioneer Chinese investors of Savannah Cement.

ANNUAL REVIEW 2015 | 16 SELECTED M&A DEALS IN EAST AFRICA–2015 (1/6)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 30th March 2015 M. Holdings Ltd Oriental KES 1.26 billion Financial M&A Kenya Tanzanian investors under M. Holdings Limited acquired a 51% Commercial Bank (USD 12.5 million) Services stake in Kenya's Oriental Commercial Bank for an undisclosed shareholders amount. M. Holdings is owned by various shareholders of Bank M Tanzania which focuses mainly on corporate and investment banking has 15 shareholders with Vimal Mehta listed as its largest shareholder with a 16 per cent stake. This is the first significant entry of Tanzanian investors in the competitive Kenyan banking industry. 2nd April 2015 Consol Glass EABL / Central KES 4.5 billion Manufacturing M&A Kenya NSE-listed East African Breweries Limited (EABL) sold its 28-year- Glass Industries (USD 46.5 million) old subsidiary glass business Central Glass Industries (CGI) to Johannesburg-based Consol Glass. Brait-backed Consol Glass is currently the leading glass packaging manufacturer in Southern Africa. Consol’s entry into Kenya will expose them to new customers including Pepsi and Coca-Cola —CGI’s present clientele— and new ones like Keroche Breweries. 17th April 2015 The Heron Zehneria Hotel KES 1 billion Hospitality M&A Kenya Kenyan-owned four-star hotel The Heron Portico, which is Portico (USD 10.9 million) managed by Indian hospitality group Sarovar Hotels & Resorts, announced a KES 1 billion buyout of a Nairobi Westlands-based rival Zehneria Hotel. The acquisition was to help it penetrate the growing middle class market and expand its market share in conference tourism and hospitality industry in Kenya. 21st April 2015 Alteo Limited Transmara Sugar Manufacturing M&A Kenya SEM-lised Mauritius’ largest sugar miller Alteo Limited acquired a Company (Sugar) majority stake (51%) in Kenya's Transmara Sugar Company in what was set to shake up the regional sugar industry. Alteo also has presence in Tanzania through its subsidiary — Sukari Investment Company — with interest in renewable energy production in Tanzania and the rest of the region. 22nd April 2015 Strandline Jacana Minerals Mining M&A Tanzania ASX-listed Strandline Resources Limited executed a Binding Heads Resources Limited of Agreement to acquire a 100% interest in a subsidiary of Jacana Limited Minerals Limited (Jacana), the Tanzanian mineral sands focussed explorer spun out of ASX listed Syrah Resources Limited in 2014. The deal means that Strandline is now the holder of an extensive and strategically-important portfolio of tenements within a major East African mineral sands producing corridor. 18th May 2015 AFB Weza Tele USD 1.7 million Fintech M&A Kenya Financial services company AFB acquired fintech company Weza Tele for USD 1.7 million in one of the largest tech startup acquisition in Kenya. Weza Tele, which was incubated in Nailab, provides a number of value added mobility solutions in commerce, supply chain, distribution and mobile payment integration, with these solutions in use in Kenya, Tanzania, Zimbabwe and Nigeria. 25th May 2015 Shelter Afrique Tanzania Mortgage USD 1 million Mortgage M&A Tanzania Nairobi-based pan African housing finance firm, Shelter Afrique, Refinance (KES 97 million) made a USD 1 million (KES 97 million) investment for a 11.06% Company equity stake in the Tanzania Mortgage Refinance Company. The partnership is part of the firm's effort to help provide affordable housing in selected member countries across Africa. 27th May 2015 Equity Group ProCredit Bank KES 5.8 billion Banking M&A Kenya / DRC Kenya's Equity Group Holdings Limited acquired a 79% stake in Congo (USD 60 million) ProCredit Bank, the leading bank in the SME sector in the DRC marking the Kenyan lender’s entry into central Africa. The acquisition was partly financed by share swaps. Other shareholders of ProCredit include Germany's state controlled development bank KfW (12%) and IFC (9%). 27th May 2015 SunOpta Inc. / Selet Hulling PLC Agribusiness M&A Ethiopia Ontario-based SunOpta (NASDAQ: STKL) announced that its wholly Tradin Organic owned subsidiary Tradin Organic Agriculture BV had raised its Agriculture BV stake in Selet Hulling PLC, in Addis Ababa, Ethiopia, from 35% to 76%, effectively taking it over. Tradin Organic Agriculture B.V., part of the Global Ingredients segment, enhanced its global sourcing capabilities with an increase in its ownership position in Selet Hulling PLC, a premier supplier of organic sesame.

ANNUAL REVIEW 2015 | 17 SELECTED M&A DEALS IN EAST AFRICA–2015 (1/6)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 2nd June 2015 Choppies Ukwala USD 10 million Retail M&A Kenya Botswana’s JSE-listed retail chain Choppies announced that it had Enterprises Ltd Supermarket reached an agreement to buy mid-tier Kenyan supermarket Ukwala for close to KES 1 billion. The deal will be done through a JV with the promoters of Export Trading Group (ETG), a Tanzania- based agri-business and logistics company. Choppies has a 75% stake in the Kenya subsidiary while 25% stake is held by Parin Bharatkumar Patel and Birju Pradipkumar Patel, the two directors of the ETG. 2nd June 2015 Brookside Dairy Sameer Agriculture KES 3.5 billion Dairy M&A Uganda Kenya’s largest milk processor Brookside Dairy Limited has Limited and Livestock (USD 38.8 million) acquired a leading Uganda dairy company Sameer Agriculture and Limited Livestock Limited (SALL) making it the first major acquisition by the Kenyatta Family owned processor outside Kenya's borders. SALL is a subsidiary of Kenya's conglomerate Sameer Group. 3rd June 2015 Cipla Ltd Quality Chemicals USD 30 million Pharmaceutical M&A Uganda Bombay Stock Exchange-listed indian multinational Limited (QCL) pharmaceutical company Cipla has agreed to buy majority stake of 51% in Quality Chemicals Limited (QCL) for USD 30 million to further extend its footprint in Africa. QCL imports and distributes human health, animal health and public health products in Uganda. 4th June 2015 Kevian Kenya Kenblest Group Beverage M&A Kenya Kenyan businessman who owns Afia Juices manufacturer Kevian Kenya Kimani Rugendo acquired the water bottling business of Thika-based bread maker Kenblest. Kevian Kenya has tapped funding from international financiers such as Germany’s DEG. Kevian Kenya has its own bottling plant and sells its water through the brand name “Mt Kenyan” that is processed in its manufacturing plant in Thika. 4th June 2015 EOH Twenty Third IT M&A SSA JSE-listed technology services provider EOH acquired an equity Century Systems stake of between 49% and 80% of Pan-African information (TTCS) technology applications and business solutions provider Twenty Third Century Systems (TTCS) and its subsidiaries. TTCS has a presence across the Africa with offices in Zimbabwe, Zambia, Malawi, Kenya, Uganda, Rwanda, Botswana & Nigeria and projects in several other countries including Ghana, Namibia, Tanzania and Cameroon. 9th June 2015 Millicom Zanzibar Telecom USD 75 million Telcoms M&A Zanzibar Stockholm-based Millicom International Cellular (MIC) announced International (Zantel) / Etisalat that it had signed a Share Purchase Agreement to acquire an 85% Cellular (MIC) Group stake in Zanzibar Telecom (Zantel) from Etisalat Group for USD 75 million. Zantel is the leading mobile telecom operator on the islands of Zanzibar with 2014 gross revenues of USD 82 million and 1.7 million subscribers across Zanzibar and mainland Tanzania. Tanzania is MIC's biggest market in Africa. 11th June 2015 Barclays Africa First Assurance KES 2.9 billion Insurance M&A Kenya Johannesburg-based Barclays Africa acquired a controlling stake (USD 30 million) (63.3%) in Kenya’s First Assurance for KES 2.9 billion to gain a foothold in the insurance market. Part of the funds (KES 2.2 billion) was buyout capital while KES 700 million was to be new capital to grow the business. Barclays Life Assurance Kenya (BLAK), a firm that Barclays Africa formed with businessmen Fanisi's Ayisi Makatiani and Darshan Chandaria in April 2015, was to run First Assurance’s life business. 1st July 2015 Gulf Petrochem Essar Petroleum Petroleum M&A Kenya United Arab Emirates based oil firm Gulf Petrochem Group Group East Africa Ltd acquired and renamed Kenyan's oil supplier Essar Petroleum East Africa Ltd [now ASPAM Energy (Kenya) Ltd] in a bid to boost its downstream supply chain in in East Africa’s oil and gas sector. The move will improve the company’s market share from the current 1.1% and consolidate the firm's operations in East Africa. 3rd July 2015 Fortis Kibo Capital Healthcare PE exit / M&A Uganda Private equity firm Kibo Capital Partners announced the sale of its Healthcare Ltd Partners / entire 40% stake in Uganda-based integrated healthcare group & CIEL International International Medical Group (IMG) to a consortium consisting of Healthcare Medical Group Mauritius-based conglomerate Ciel Group and India's healthcare Limited operator Fortis. Kibo originally invested in IMG in January 2012, further boosting its holding in the company in August last year by acquiring an additional stake from TBL Mirror Fund. 7th July 2015 Israel Chemicals Allana Potash USD 137 million Mining M&A Ethiopia Tel Aviv-based Israel Chemicals Ltd (ICL) completed the acquisition Ltd Corporation of a majority stake (83.78%) in Toronto Stock Exchange-listed Allana Potash Corporation for USD 137 million. Allana Potash16 is developing Ethiopia’s Danakhil mine for potash, an ingredient used in manufacturing potassium fertilisers. The Danakhil mine is located in the Afar region of North Eastern Ethiopia. In 2014, ICL bought a 16.22%stake in Allana Potash for USD 25 million. SELECTED M&A DEALS IN EAST AFRICA–2015 (4/6)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 7th August 2015 Axis ApexAfrica Capital KES 470 million Stock brokerage M&A Kenya Mauritian fund manager Axis acquired Kenyan stock broker (USD 4.5 million) ApexAfrica Capital for KES 470 million, making it the highest priced takeover of a market intermediary in East Africa. Axis took over ApexAfrica through its local unit Mauritius Kenya Investment Holding. The acquisition saw Mauritius’ Axis enter the Kenyan stockbrokerage market for the first time, betting on its solid base 11th August 2015 Premfin Capital Gatsby Microfinance M&A Uganda, ofA Mauritius-based individual and corporate financial clientsservices in firm East Premfin Africa to Capital build on acquired Microfinance, Tanzania two microfinance companies in Tanzania and Uganda. The two Fanikiwa firms, Gatsby Microfinance in Uganda and Fanikiwa Microfinance in Microfinance Tanzania, have a total of 11 branches in the two countries. Premfin is owned by Platcorp Holdings, NSE-listed investment firm Centum, and Afrosuez Investments Ltd. 11th August 2015 RCL Foods Hudani Manji USD 4.66 million Agribusiness M&A Uganda JSE-listed food group RCL Foods announced that it had entered Holdings into an agreement to acquire a 33.5% stake in Hudani Manji Holdings (HMH) for USD 4.66 million in an all cash transaction marking RCL's entry into East African region. HMH is a poultry producer operating a feed mill, broiler farms and processing plant currently owned by the Hudani and Manji families, who have extensive interests in East Africa in food processing, distribution, construction, telecoms, real estate and hospitality. 18th August 2015 Frontier Transit Freight ZAR 49 million Transportation & M&A Kenya, SA Hong Kong-listed and Nairobi-headquartered transportation and Services Group Coordinators (USD 3.8 miilion) logistics logistics solutions provider in frontier markets Frontier Services Limited Group Group Limited announced that it had entered into an agreement to acquire Johannesburg-based Transit Freight Coordinators Group (TFCG) for consideration of ZAR 49 million. TFCG provides transportation and movement services for freight across road, rail, sea and air from its operational hubs in South Africa, Zambia and Zimbabwe. 27th August 2015 OneLogix Group Kuehn+Nagel USD 1 million Transportation & M&A Kenya JSE-listed niche logistics provider OneLogix Group expanded into logistics Kenya’s transport market by acquiring a 30% stake in Kenya's subsidiary of Swiss-based logistics firm Kuehn+Nagel for USD 1 million. Kuehn specialises in the bulk vehicle haulage business. The investment was to go towards buying a fleet for the business, IT infrastructure and capacity building in the operations and technical skills development. 2nd September 2015 Goodlife Eldochem & Pharmaceutical M&A Kenya The Competition Authority of Kenya (CAK) approved the Mimosa acquisition of retail pharmacy brand Mimosa by IFC and Catalyst Pharmacies Principal Partners backed Goodlife, which has embarked on an aggressive regional expansion plan. CAK also allowed Mimosa to proceed with its proposed acquisition of Eldochem Pharmacy’s branches at Nairobi’s Green Span Mall and Mombasa’s Nyali Centre, with Goodlife being the ultimate acquirer. 8th September 2015 I&M Holdings Giro Commercial Banking M&A Kenya Kenya's NSE-listed lender I&M Holdings announced that it had Limited Bank agreed to buy a locally-owned smaller lender Giro Commercial Bank (GCB), which has over KES 2.6 billion in net assets, for an undisclosed amount. I&M Holdings, which has operations in Kenya, Tanzania, Rwanda and Mauritius, plans to merge GCB with its flagship subsidiary I&M Bank Ltd. 9th September 2015 FTG Holdings Beauty Plus Personal care M&A Kenya NSE-listed consumer goods manufacturer FTG Holdings expanded Ltd Trading East Africa its cosmetics business by buying hair and skin brands of a Nairobi- based company. FTG acquired Miss Africa, Black Angel and Beautyplus hair brands from Beauty Plus Trading East Africa in addition to acquiring the Monalisa skincare brand. The move was meant to increase sales from the cosmetics division which has promising prospects due to increased consumer awareness and growing incomes in EA. 14th September 2015 Kenya Wine Distell Beverage M&A Kenya Kenya Wine Agencies Holdings East Africa Ltd (KHEAL) announced Agencies Winemasters (K) that it had agreed to acquire South African wine and spirit Holdings East Ltd distributing firm Distell Winemasters (K) Ltd in a deal it hoped Africa Ltd would boost its flagging business in East Africa. JSE-listed Distell Group acquired a 26% stake in KHEAL in 2014, giving Distell Group two seats on the board of KHEAL, which owns Kenya Wine17 Agencies Ltd (KWAL). Distell Winemasters had estimated annual sales revenue of KES 280.2 million (USD 2.64 million) in 2014. SELECTED M&A DEALS IN EAST AFRICA–2015 (5/6)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 14th September 2015 Fairmont Mount KES 1.8 billion Hospitality M&A Kenya Saudi Arabian conglomerate Kingdom Holding Company (KHC) sold Kenya Safari Club (USD 16.8 million) its 75% stake in the famous luxury hotel Fairmont Mount Kenya Safari Club for KES 1.8 billion through its wholly owned subsidiary Kingdom Hotel Investments. In addition to its ownership in FRHI Hotels & Resorts – which in turn comprises the Fairmont, Raffles and Swissôtel brands – KHC holds significant interests in industry leading luxury hotel management in Europe, North America, the Middle East, Asia, and Africa 2nd October 2015 African Guarantee Fund for KES 3.6 billion Financial M&A Kenya Nairobi-based African Guarantee Fund (AGF) expanded its Guarantee Fund Private (USD 35 million) services footprint into West Africa after it bought a majority stake in the Investments in Guarantee Fund for Private Investments in Africa (Gari) for KES 3.6 Africa billion (USD 35 million). AGF, which guarantees loans to SMEs, now hold an 81% stake in Gari. The acquisition was expected to increase turnover and at the same time reduce costs. This was the first deal in Africa that involves one guarantee firm buying its peer. 9th October 2015 Nakumatt Yako Supermarket Retail M&A Kenya Regional retailer Nakumatt Holdings received approval from Holdings Limited Kenya's Competition Authority to acquire 3 stores in Western Limited Kenya owned by Yako Supermarket Limited. The stores are located in Kakamega, Bungoma and Busia. The acquisition added to the retail chain’s vast branch network as it strives to stay ahead of competitors Tuskys, Naivas and Uchumi. Nakumatt has 9 branches in Uganda, 4 in Tanzania and 2 in Rwanda alongside its 40 stores in Kenya. 13th October 2015 Bank of Africa Agaseke Bank Banking M&A Rwanda Mali-based continental financial institution Bank of Africa (BoA) Group Group acquired a majority stake (90%) in Rwandan micro-finance bank Agaseke Bank (now Bank of Africa Rwanda) which was previously majority owned by insurance group SORAS. The micro lender had total assets of USD 14 million as at end of 2014. The acquisition allows BoA Group to complement its presence in the EA region and adds an 18th country to its existing network. 19th October 2015 I&M Holdings Burbidge Capital Investment M&A Kenya NSE-listed financial services firm I&M Holdings announced that it Limited banking was in the process of acquiring a 65% stake in regional advisory and brokerage firm Burbidge Capital Limited subject to regulatory approvals. Burbidge Capital has offices in Kenya, Uganda and a presence across East Africa and has, since its foundation in 2010, helped a number of firms in the EA region to raise funds and to go public through listing on the NSE. 30th October 2015 Atlas Mara, BRD Commercial USD 21 million Banking M&A Rwanda Rwandan banks Banque Populaire du Rwanda (BPR) and BRD Banque Bank Commercial Bank merged following the acquisition of the former Populaire du by LSE-listed financial services group Atlas Mara for USD 21 million. Rwanda (BPR) BRD Commercial Bank was acquired by Atlas Mara in 2014. Following the merger, Atlas Mara holds about 62% in the combined entity. The merger made the joint entity the second-largest bank in Rwanda with assets worth USD 325 million. 10th November 2015 Razco Limited Alpha Dairy Ltd Dairy M&A Kenya Regional ice cream manufacturer Razco Limited was cleared by Kenya's Competition Authority to buy out its rival Alpha Dairy Limited. Razco Limited is the producer of Lyons Maid brand of ice cream while Alpha Dairy produces Ooh! Ice cream. Razco Limited’s turnover in 2014 was about KES 457.5 million while Alpha Dairy Limited’s turnover stood at an estimated KES 207.8 million. 19th November 2015 Delta Africa Buffalo Mall KES 418 million Real estate M&A Kenya South Africa’s JSE-listed property fund Delta Africa Property Property (USD 4 million) Holdings entered Kenya’s property market after reaching an Holdings agreement to buy a 45.5% stake in Kenya's Buffalo Mall for KES 418 million. Delta Africa announced that it will buy the stake from another JSE-listed property fund The Pivotal Fund's Mauritius- based company Abland Diversified Holdings Limited which has as its sole asset a 45.5% shareholding in Buffalo Mall Naivasha Limited. 20th November 2015 Atlas East Africa Manufacturing M&A Ethiopia LSE and NSE-listed logistics firm Atlas Development & Support Development & Packaging Holdings Services (ADSS) acquired Ethiopia-based glass bottles maker East Support Limited Africa Packaging Holdings Limited (EAPH). ADSS will be raising new Services capital to buy the EAPH after receiving shareholders approve. The acquisition was in line with Atlas Development’s establishment of an industrial division intended to broaden sector focus and diversify cyclical services revenue streams. SELECTED M&A DEALS IN EAST AFRICA–2015 (6/6)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 23rd November 2015 MyBucks Opportunities Micro-credit M&A Kenya Luxemburg-based financial technology firm MyBucks bought the International African assets of Opportunities International, an NGO which lends to the low-end of the market. Opportunities Kenya, its local subsidiary, applied for a deposit taking licence in 2011. MyBucks, on the other hand, does business in Kenya as GetBucks Kenya and has been operating locally since 2012. 25th November 2015 James Finlays Skytrain Limited Logistics M&A Kenya UK agro-based firm James Finlays received approval from Kenya's Competition Authority to buyout Skytrain Limited, a cargo ground handling firm based at Nairobi's JKIA as it sought to enhance efficiency in exporting its products. Finlays’ local interests include flower farms in Mount Kenya, Naivasha and the Western Highlands and tea farms in Kericho. 27th November 2015 The Sovereign InterContinental Hospitality M&A Kenya The Sovereign Group, a Kenyan investment company, acquired an Group Hotels Corp. additional 33.83% stake in Kenya's 5-star hotel InterContinental Hotel Nairobi from global chain InterContinental Hotels Corporation, marking the UK-based firm’s exit from the Nairobi facility after 48 years. The Sovereign Group now owns a majority stake (53.13%, up from 19.3%) in Kenya Hotel Properties Limited, InterContinental Hotel Nairobi’s holding company. 17th December 2015 Woolworths Deacons Kenya Retail M&A Kenya Clothing and household goods retailer Deacons Kenya Limited sold Holdings Limited its remaining 49% stake in Woolworths Kenya Limited to South Africa's Woolworths Holdings ending a three year joint venture between them. The proceeds from the sale will be invested in new franchises, stores, brands as well as funding its existing operations.

ANNUAL REVIEW 2015 | 21 SELECTED PRIVATE PLACEMENTS, RIs & IPOs IN EEAST AFRICA – 2015 (1/2)

2015 was a low year for the natural resources sector in East Africa as investor interest decreased, with nearly half the deals being announced compared to 2014. The number of deals reduced to 23 in 2015 down from 38 in 2014 (-39% y/y), with Kenya accounting for almost 50% of the total deals recorded in the sector.

The oil and gas sector led the pack after it recorded 9 of the total deals in 2015 (14 in 2014). The oil sector headlined with exploration firms such as Africa Oil, Simba Energy and Pancontinental raising funds through private placement transactions to facilitate their projects in the region - as the low oil prices continued to engulf the sector. The largest transaction in the sector was Africa Oil’s farmout of half of its explorations licences in Kenya and two in Ethiopia to Maersk Oil for USD 845 million.

Investment Date Buyer Seller Investment size Sector type Country Synopsis 3rd February 2015 Simba Energy KES 32.5 million Oil & gas Share private Kenya TSX-V listed oil and gas exploration company focused on the (USD 0.35 million) placement onshore frontier basins of Africa Simba Energy raised KES 32.5 million through a private placement. The funds were to be used to carry out further exploration on its Mandera block in Kenya. Simba has a 100% interest in Block 2A located in Mandera Basin. 12th February 2015 Africa Oil Corp USD 125 million Oil & gas Share private Kenya TSX-listed oil & gas explorer Africa Oil completed its USD 125 placement million private placement having issued an aggregate of 57 million common shares. The net proceeds were to be used to fund ongoing appraisal and pre-development activities in the South Lokichar Basin, Kenya together with its partner, Tullow Oil plc have discovered over 600 million barrels of gross contingent oil resources (best estimate). 26th March 2015 Housing Finance KES 3.5 billion Banking Rights issue Kenya NSE-listed mortgage firm Housing Finance raised KES 3.5 billion in (USD 38.8 million) a rights issue to help the bank increase its lending base and to finance its branch network expansion. In a statement, the lender reported that 84% of its shareholders had taken up their rights in an 157% oversubscribed issue that received KES 9.01 billion in bids. 5th May 2015 Stampede Africa Oil Corp. KES 9.5 billion Oil & gas Share private Kenya, TSE-listed Africa Oil raised USD 100 million through a private Natural (USD 100 million) placement Ethiopia & placement sale of shares to Stampede Natural Resources, an entity Resources Somalia owned by a fund advised by PE firm Helios Investment Partners LLP. The deal gives Stampede a 12.37% stake and the net proceeds of the financing will be used for Africa Oil’s ongoing evaluation and development work in East Africa. 21st May 2015 Mwalimu TZS 31 billion Banking IPO Tanzania Mwalimu Commercial Bank's IPO was oversubscribed by over 24% Commercial Bank (USD 15.2 million) and the bank took all the excess shares —under green shoe (MCB) option. MCB wanted to raise TZS 25 billion but it received TZS 31 billion. The bank listed on the Enterprise Growth Market Segment of the DSE that saw 80% of the bank's shares offered to the public. 17th June 2015 MTN Rwanda / RWF 28 billion Telcoms IPO Rwanda Rwanda's Crystal Telecom’s IPO was oversubscribed by 123%. The Crystal Telecom (USD 41 million) firm was offering 270.17 million shares (20% stake) of its MTN Rwanda stake to both local and international investors to raise RWF 28 billion (USD 41 million). The shares started trading on Rwanda Stock Exchange on 17 July 2015. 29th June 2015 Sipa Resources Ltd USD 6 million Mining Share private Uganda ASX-listed exploration firm Sipa Resources Ltd raised USD 6 million placement to fund exploration of nickel and copper within the Kitgum-Pader tenement in northwestern Uganda. The funds were intended to support exploration work programmes for nickel with copper at the Akelikongo prospect in the Kitgum-Pader project. The shares purchase plan raised USD 5.24 million against USD 3.5 million target as it was oversubscribed and the firm’s directors subscribed to the shares placement. 6th July 2015 Stockport CAD 113,750 Mining Share private Kenya TSX-listed miner Stockport Exploration Inc. announced that it had Exploration Inc (USD 84,000) placement raised CAD 113,750 through a private placement of 2,843,750 units priced at CAD 0.04 per unit. Each unit consisted of one common share, and one two-year warrant with an exercise price of CAD 0.06. Net proceeds of the private placement were to be used for operations of the Company's pilot gold recovery circuit at the Company's SPL 214 concession in South Western Kenya and for working capital.

ANNUAL REVIEW 2015 | 22 SELECTED PRIVATE PLACEMENTS, RIs & IPOs IN EEAST AFRICA – 2015 (2/2)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 24th July 2015 Kenya Women KES 1.5 billion Financial Share private Kenya The Kenya Women Holding (KWH) ceded a 30% stake of its micro- Holding (KWH), (USD 14.5 million) services placement finance subsidiary, Kenya Women’s Finance Trust (KWFT), to its Kenya Women’s members and founder directors in a KES 1.5 billion share private Finance Trust placement. KWH sold 25% of its stake in KWFT to 60,974 members (KWFT) and another 5% to founder directors of the lender so as to comply with Central Bank’s regulatory requirements. 18th August 2015 CDC Group Plc, CRBD Bank TZS 150 billion Banking Rights issue Tanzania Tanzania's CRBD Bank completed a TZS 150 billion rights issue. The IFC and Africa (USD 69 million) bank's shareholders took up 70.5% of their rights with the Capitalisation remainder coming from underwriters CDC Group Plc, International Fund Ltd Finance Corporation (IFC) and Africa Capitalisation Fund Ltd. The funds were to finance the firm's expansion drive as well as helping it meet the regulator's minimum core capital requirement. 15th October 2015 Centum K-Rep Bank KES 1.2 billion Banking Rights issue Kenya NSE-listed investment firm Centum Investments injected KES 1.2 Investments (USD 11.5 million) billion in K-Rep Bank (its 67.54% subsidiary) as part of the lender’s ongoing rights issue. The additional funds were to be used for product diversification, refurbishment and expansion of its branch network and upgrading of its core banking system. Following the capital injection, the bank’s core capital improved from KES 2.6 billion to KES 3.8 billion and is set to close at KES 4.1 billion at the conclusion of the rights issue. 27th November 2015 Stanlib KES 3.6 billion Real estate IPO-REIT Kenya Kenya’s first Income-Real Estate Investment Trust (REIT) IPO issued Investments (USD 34.6 million) by Stanlib Investments raised KES 3.6 billion of the targeted KES 12.5 billion representing a 29% subscription rate. According to the promoters, the REIT is expected to earn investors a minimum annual return of 14%. The units started trading on the Nairobi Securities Exchange on 27th November 2015. 14th December 2015 Pancontinental Oil AUD 738,000 Oil & gas Share private Kenya ASX-listed exploration company Pancontinental Oil & Gas NL & Gas NL (USD 530,000) placement completed raising AUD 738,000 in a private placement through the sale of 184,500,000 shares to professional and sophisticated investors at an issue price of AUD 0.004 per share. The funds were part of the drive by the company to bolster its cash reserves by AUD 2.2 million to settle debt and for its exploration activities.

ANNUAL REVIEW 2015 | 23 OTHER SELECTED DEALS IN EAST AFRICA – 2015 (1/2)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 2nd February 2015 Wadi Degia Home Afrika KES 2 billion Real Estate JV Kenya Egyptian private clubs developer Wadi Degla partnered with NSE- (USD 21.5 million) listed Home Afrika (HA) through a joint venture to invest KES 2 billion in HA's Migaa mixed development in Kenya. The Cairo- based firm is set to build a clubhouse, fund the completion of an 18-hole golf course and construct a sports academy at Migaa in Kiambu County. 19th February 2015 CFAO Porsche Holding Automobile JV Kenya France-listed retail group CFAO announced the creation of a joint Salzburg venture for East Africa. The new entity is owned by CFAO and Porsche Holding Salzburg and will import and distribute Volkswagen Passenger Cars and Light Commercial Vehicles in six East African countries: Kenya, Malawi, Uganda, Tanzania, Zambia and Zimbabwe. 8th April 2015 East African KES 5 billion Manufacturing Corporate Kenya The first tranche of East African Breweries Ltd (EABL) bond was Breweries Ltd (USD 54.3 million) (Beverage) bond oversubscribed by 81% attracting over KES 9 billion against KES 5 (EABL) billion target. The 3-year bond had a 12.25% coupon. The fundraising came only two months after the beer manufacturer retired its KES 5.4 billion debut commercial paper taken in 2014. The cash was part of a restructuring of EABL balance sheet in addition to capital expenditure and general use. 3rd June 2015 Tata Petrodyne Swala Energy Ltd USD 5.7 million Oil & gas Farmout Tanzania ASX-listed Swala Energy Limited announced that Swala Oil & Gas Limited (TPL) (Tanzania) Plc had reached agreement with Bombay Stock Exchange-listed Tata Petrodyne Limited (TPL), a subsidiary of the multinational Tata Sons Limited, under which TPL shall farm into the Pangani and Kilosa-Kilombero licences in Tanzania. Swala owns 58.5% of Swala Tanzania. 9th June 2015 Chase Bank KES 4.8 billion Banking Corporate Kenya Kenya's Tier II lender Chase Bank corporate bond (13.25% coupon) (USD 49.5 million) bond attracted over KES 4.8 billion representing a 61% oversubscription against KES 3 billion target set for the first tranche of the of the KES 10 billion multi currency MTN programme. Chase Bank exercised the green shoe option to take up the extra KES 1.8 billion. 18th June 2015 Centum KES 6 billion Investment Corporate Kenya Kenya's NSE-listed investment firm Centum Investment Investment Co (USD 61 million) bond announced that its KES 6 billion bond received applications worth KES 8.31 billion representing a 38% oversubscription. The 5-year bond which has a fixed-rate component as well as an equity-linked portion was listed on the Nairobi Securities Exchange. The cash was to be used to fund Centum's investments in financial services, energy and real estate. 22nd July 2015 Saint-Gobain Lodhia Gypsum Manufacturing JV Tanzania Paris-listed multinational materials maker Saint-Gobain finalized Industries an agreement creating a JV in which it owns 50% of the capital of Arusha-based Lodhia Gypsum Industries (LGI). LGI manufactures and sells plasterboard in Tanzania, Kenya and neighboring countries. The JV allows Saint-Gobain to affirm its leadership in the plasterboard market in East Africa in line with its strategy of developing its presence in SSA where the Group is already present in South Africa. 12th August 2015 Real People Kenya KES 1.63 billion Microfinance Corporate Kenya Kenya's micro-lender Real People raised KES 1.63 billion from a Ltd (USD 15.5 million) bond corporate bond issue out of KES 2.5 billion that it was seeking to raise representing a 65.2% subscription rate. The bond saw investors take up KES 1.36 billion in five-year fixed rate notes and KES 270 million in three-year fixed rate notes. The credit only microfinance was seeking to increase its loan portfolio through the midterm note. 1st October 2015 Wame Mineral Alecto Energy plc USD 2 million Mining Farmout Ethiopia AIM-listed gold and base metal exploration and development firm Development Alecto Energy plc announced the sale of its wholly owned subsidiaries Nubian Gold Exploration Limited and Rift Valley Resources Limited, which hold all its interests in Ethiopia, to privately held Ethiopian firm Wame Mineral Development (WMD). Under the terms, WMD paid Alecto an initial nominal consideration of GBP 1 in respect of each of Nubian and Rift Valley with potential further deferred consideration (royalty) of USD 3 per JORC resource ounce of gold discovered up to a maximum of USD 1 million for each of the licences. 22

ANNUAL REVIEW 2015 | 24 OTHER SELECTED DEALS IN EAST AFRICA – 2015 (2/2)

Investment Date Buyer Seller Investment size Sector type Country Synopsis 6th October 2015 Cytonn KES 2 billion Real estate Corporate Kenya Kenyan investment firm Cytonn Investments raised an extra KES Investments (USD 19.4 million) bond 600 million through its debut privately placed bond for its real estate projects in Kenya. The firm said in a market report that it had then raised KES 2 billion up from KES 1.4 billion that was raised in the first tranche. The issue was sold to local, foreign and high net worth individuals and had an average interest rate of 16.5% p.a. with a five-year tenor. 23rd October 2015 Family Bank KES 2 billion Banking Corporate Kenya Kenya's Family Bank's medium term corporate bond meant to raise (USD 19.4 million) bond KES 4 billion attracted bids worth KES 2.02 billion (50.4% subscription rate). The 5.5-year tenor bond had fixed coupon (13.75%), floating (250 bps above the yield of the 182-day T-bill; min 12.5% and max 17.5%) and mixed rate (14%) portions. The mid- tier lender, which secured approval for a KES 10 billion multi- currency bond in September 2015, planned to use the funds to boost lending, increase branch network, invest in new technology and expand into neighbouring markets in East Africa. 4th November 2015 Octant Energy Afren Oil Oil & gas Farmout Kenya, Canada-based oil and gas company Octant Energy Corp. entered Tanzania into 3 agreements with subsidiary companies of cash strapped Afren PLC to acquire assets in the Kenya and Tanzania for an undisclosed amount. The assets acquired by Canada-based Octant include Block L17/L18 and Block 1 in Kenya, and the Tanga Block in Tanzania. 6th November 2015 Helios Acorn Group Real estate Joint Kenya Private equity firm Helios Investment Partners entered into a joint Investment venture venture with Kenya's property developer Acorn Group, giving the Partners former NSE-listed Britam partner the financial muscle to undertake large real estate projects. Helios will also help raise funds to bankroll Acorn’s real estate projects. 10th November 2015 Panda Hill RECB Limited USD 10.6 million Mining Farmout Tanzania Panda Hill Tanzania, the JV owned by ASX-listed Cradle Resources Tanzania Ltd and Tremont Investments Ltd exercised its option to acquire 100% of the Panda Hill mining licences in Tanzania from RECB Limited for USD 10.6 million. This represented a saving of about USD 2.5 million from previous option arrangements, which PHT was able to negotiate due to the time benefit and certainty to RECB of the early option exercise. 12th November 2015 Moller-Maersk Africa Oil Corp. USD 845 million Oil & gas Farmout Kenya, Copenhagen-based shipping and oil company Moller-Maersk (Maersk Oil) Ethiopia agreed to buy half of TSX-listed Africa Oil Corporation’s stakes in 3 onshore exploration licenses in Kenya and two in Ethiopia. The deal requires Maersk Oil to split the payment between USD 365 million upfront and up to USD 480 million in future payments depending on the performance of the Lockichar Project.

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