UAC eyes PE financing for distressed MR Biggs- Sources 

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Nigeria’s foremost conglomerate and Marketers of tasty, nourishing convenience foods, United African Company of Nigeria (UACN) is planning on raising financing from Private Equity investors, BusinessDay has learnt from a reliable source.
The proceeds would be used to give a facelift to the firm’s distressed foods and restaurant business, Mr Biggs, which has been facing turbulent times arising from stiff competitions and poor management structure, according to a source familiar with the matter.
“The firm has reached out to several PE players and are currently in talks with two investors who were former staffs of the embattled Dubai –Based PE firm, Abraaj”, the person who doesn’t want the name in print as they are not allowed to speak on the matter said.
The source, however, did not disclose the amount the firm plans on raising.
UACN was not available to comment when contacted as the phone number on the website of the consumer goods firm was not reachable at the time BusinessDay was filing this report
UAC is a Holding Company with a number of subsidiary, sub-subsidiary and Joint Venture Companies. It is also involved in some strong regional and international partnerships in a bid to enhance sustainable growth.
The partnerships are: UAC Foods Limited – a business partnership between Tiger Brands Limited, holding 49 percent of the equity and UAC controlling 51 percent; MDS Logistics Limited, a joint venture with Imperial Logistics, which holds 49 percent equity with UAC controlling 51 percent and UAC Restaurants Limited, where Famous Brands holds 49 per cent of the equity, with UAC controlling 51 per cent. UAC also operates successful joint ventures in the real estate business and technical collaboration with Akzo Nobel for the manufacture of Dulux Paints in Nigeria.
Since the inception of UAC as far back

How family businesses can better reposition to attract PE investments—PWC survey

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Over the last decade, there has been a shift in the way family-owned businesses are financed from traditional means to attracting Private Equity (PE) investments.

The relationship between family-owned businesses (FB) and attracting PE investments can be liken to a two-way chain. An FB can invite a PE as a partner, or a PE invites an FB as a partner.

A recent survey by global consulting and auditing firm, PriceWaterhousecoopers (PwC), on family businesses showed that FB is fast appreciating the benefit from PE firms’ expertise in the areas of governance, financial management, strategic planning, and shoring up companies for sustained success.

According to the survey, 39 percent of family businesses are considering PE investments within the next 1-2 years.

This change in ideology is due to an increased focus on long-term value generation, succession and professionalism at FB, as well as the positive brand perception that an announcement of a PE investment (and re-investment) gives a business.

According to the survey, the most important factors considered when PE’s are looking into family businesses include:

• Identification of core capabilities, and developing them, to create a differentiated position in the market.

• Strong corporate governance that ensures absolute transparency in business operations and separates ownership from management of the business.

• Historical and current financial records that conform to International Financial Reporting Standards (IFRS)

• Compliance with all applicable local and national tax regulations PE firms appreciate the strategic value of good corporate governance and are well positioned to work with FB in strategy implementation such as independent review of existing strategies. This would ensure the FB is better equipped to identify risks and make smart, goal-oriented decisions within their marketplace.

In terms of short-term aspirations, profitability is crucial as 93 percent of the correspondents cited … Read More...