In December 2007 Helios completed the $178.7 million acquisition of a 24.99% interest in Equity Bank, a Nairobi Stock Exchange-listed bank. Equity Bank focuses on providing banking services to the hitherto un-banked population. The successful execution of that strategy has enabled Equity Bank to build Kenya's largest base of account holders and industry-leading growth rates and profitability. Helios is represented on the Bank's board of directors and holds the chairmanship of several board committees. The investment and strategic partnership with the bank will enable the Bank to continue its local and regional expansion, increase its lending capability and provide capital for investment in the Bank's internal operations, principally information technology systems and human resources.
www.equitybank.co.ke
In August 2007 Helios completed the $170.5 million purchase of a 22% interest in AfricaTel, a newly formed holding company aggregating all of the sub-Saharan Africa telecommunications assets of the Portugal Telecom Group (principally in Angola, Namibia, Cape Verde, Sao Tome), in a leveraged recapitalization valuing AfricaTel at $1.15 billion on a total enterprise value basis. Helios and Portugal Telecom are spearheading AfricaTel's efforts to consolidate and grow the existing businesses, while selectively evaluating opportunities to expand the company's geographic footprint within sub-Saharan Africa.
www.telecom.pt
In April 2007 Helios completed a $50 million acquisition of a 16% interest in First City Monument Bank, a rapidly growing universal bank in Nigeria. The bank, which is listed on the Nigerian Stock Exchange, is capitalizing on the low penetration of banking services within the country, and strong underlying economic growth trends, to build a dominant position in retail banking, while maintaining its traditional leadership in corporate banking. Helios is actively supporting management's efforts in executing on the corporate strategy and in team building. Helios is represented on the Bank's board of directors and on its key committees.
www.firstcitygroup.com
In January 2005, the principals of Helios founded HTN to capitalize on the extremely strong growth in mobile telephony in Nigeria by deploying the successful tower leasing business model pioneered by US-based companies such as Crown Castle International and American Tower. The tower leasing business is characterized by high operating leverage, recurring revenues underpinned by long-term contracts, and high returns on invested capital. In the sub-Saharan African environment, in particular, the model exhibits the high growth characteristics of wireless communications and the defensive characteristics of a real estate business. Helios and affiliated entities have invested approximately $12 million and hold a majority interest in the company on a fully-diluted basis.
www.heliostowers.com
In August 2004, Helios took over joint management of the Modern Africa fund, a fully-invested but severely distressed Africa-focused private equity fund, in a transaction valuing the 55% interest in Afsat Communications at $2.7 million. Afsat, headquartered in Kenya, was formed to provide high-end satellite-based data network solutions for corporate and governmental organizations in east and central Africa. Helios has provided management with hands-on support for the company's expansion into the larger and more lucrative consumer market segment as well as its geographic expansion across the sub-Saharan region (including Nigeria, the region's single largest market). In June, 2007, the company reached a merger agreement with MWEB, South Africa's leading Internet service provider, valuing the Modern Africa interest at $24 million, implying a 3-year internal rate of return of approximately 115%.
www.afsat.com
The August 2004 Modern Africa transaction valued the Modern Africa fund's 8.5% interest in Flamingo Holdings at $12.3mm. Flamingo, based in Kenya, is active in the growing, processing, packaging, marketing and distribution of cut flowers and fresh vegetable. The company is the largest vertically integrated horticultural producer and exporter of flowers and vegetables from Africa to the European Union. Helios worked closely with management to maintain the company's growth and profitability in the face of significant strategic challenges, notably continued consolidation in the UK supermarket sector, the company's principal customer base, and the concurrent rapid increase in air freight costs as oil prices rose and air cargo capacity diminished. Despite these significant strategic challenges, in May, 2007, the company reached a merger agreement with Finlay's, a wholly owned subsidiary of John Swire and Sons, valuing the Modern Africa interest at $17.5 million, implying a 40% capital gain.
www.finlays.net