FILE PHOTO | NMG
The number of corporate deals in East Africa went up by a fifth in the first four months of the year compared to a similar period last year, with Kenya accounting for two thirds of the disclosed agreements.
Analysis by advisory firm IM Burbidge Capital shows the number stood at 31 for the four months, compared to 26 last year.
"Deal activity in April brought the total number of deals for the year thus far to 31 with a total disclosed deal value of about $360 million (Sh38.5 billion), most of these being private equity investments,” said IM Burbidge in the report.
IM Burbidge expects firms that are providing critical services during the virus crisis to attract more investor interest, offering hope that the deal pipeline will not dry up in coming months as a result of the travel restrictions and capital drought.
The value of disclosed deals last year stood at $847.4 million (Sh90.7 billion) in the first four months, largely on the back of a Sh51.7 billion deal in January 2019 by Indonesian oil giant Medco Energi to buy London-listed Ophir Energy.
