Elephant Group attracts equity investment from foreign investor

An indigenous firm, Elephant Group Limited has announced that it has sealed a deal with AfricInvest for an equity investment in the company.

Elephant Group is the largest and fastest growing indigenous agro commodities company in Nigeria, where it imports, exports, markets and distributes rice, fertilizer and other agro commodities.

In pursuant to the investment, AfricInvest Fund III would acquire a minority equity interest in Elephant Group through an issue of new shares. The transaction will be the first ever-private equity investment in the Nigerian agricultural commodities sector. Standard Chartered (SCD) acted as sole financial advisor to Elephant Group on the transaction.

According to a statement from the bank, the funds raised will be used to boost Elephant Group’s market share in agricultural commodities trading and to deepen penetration of agricultural commodities exports across selected markets in Africa.

The Group will also continue to strengthen its backward integration initiatives in the rice, crude palm oil and fertilizer value chain. The Founder and Group Managing Director of Elephant Group, Tunji Owoeye explained that the investment would enable the Company to benefit further from government’s drive to promote agricultural productivity in Nigeria.

He added that the investment would also allow Elephant Group to transform from an indigenous agricultural commodities company in Nigeria to a vertically integrated Pan-African player.

“This transaction will be the first ever private equity investment in the Nigerian agricultural commodities sector, and we view it a strong vote of confidence in the Company. We are excited to partner with an Africa-focused investor with experience in the agricultural sector”.

The Senior Partner and Managing Director of AfricInvest in Nigeria, Abiola Ojo-Osagie said; “We have identified a Company led by entrepreneurs and a management team with a good knowledge of the domestic market.

Through our partnership with the Elephant Group, AfricInvest is taking advantage of an opportunity to capitalize on Nigeria’s agricultural transformation agenda to build an enduring institution with a clear potential for growth and regional expansion”.

The Head Merger &Acquisition, West Africa, Yemisi Deji-Bejide said; “Standard Chartered is delighted to have worked with Elephant Group in achieving its strategic objectives and remains committed to assisting businesses in Africa to attract growth capital. The transaction has successfully closed. “