U.S. private equity firm Carlyle Group LP has agreed to acquire a stake in South African tyre dealer Tiger Wheel & Tyre, according to a person familiar with matter, marking its first deal in Africa's most developed economy. Carlyle, together with insurer Old Mutual Plc , will acquire the stake from South Africa's Ethos Private Equity, said the source, who declined to be identified because the information is not yet public.Carlyle declined to comment. No one was immediately reachable for comment at Old Mutual or Ethos. It was not immediately clear whether the deal had received approval from South African competition regulators.Tiger Wheel & Tyre sells and fits replacement tyres across South Africa and has a presence in Namibia, Botswana and Mozambique. The deal values it at an enterprise value of around 1.75 billion rand ($158 million), the source said.Private equity firms are targeting sub-Saharan Africa to capture fast-growing economies and rising consumer spending. On Monday, Nigeria's Diamond Bank said Carlyle had invested $147 million in it.
Shares of CG fell by 1.14% or $-0.34/share to $29.46. In the past year, the shares have traded as low as $26.34 and as high as $39.38. On average, 430749 shares of CG exchange hands on a given day and today's volume is recorded at 618768.
Source
