Direct Pay Online Group Acquires 100% Stake in Setcom Limited

By Juma Fred / December 11, 2017

Direct Pay Online Group (DPO), a Kenyan internet payments firm, has acquired 100.0 percent stake of Setcom Ltd, a fintech company that operates instant electronic funds transfer (EFT) solutions in South Africa, for an undisclosed amount.

The deal follows two other acquisitions by DPO this year, of Virtual Card Services and Pay thru South Africa, both providing online payment services.

DPO currently operates in 12 African countries, including Kenya, Tanzania, Uganda and South Africa and has acquired firms in Namibia and Botswana, with further plans to expand into countries such as Nigeria, Ghana, DRC, and Mozambique.

The deal affirms DPO’s strategy to be the leading online payment solution in Africa and is supported by the investment made into the firm by Apis Partners, a London based private equity firm. In November this year, Apis injected funding of USD 5.0 million (519.0 million shillings) into DPO, funds that the firm mentioned would be used for expansion of operations and upgrade of its online systems.

The continued interest by investors in technology-driven companies in Sub-Sahara Africa is catalyzed by the rising need for technology products as more businesses seek to enhance efficiency and reduce costs.

Vivo Energy

Vivo Energy Holding B.V. has entered into a share swap agreement with Engen Holdings Proprietary (Pty) Limited, a subsidiary of Engen Limited.

The transaction will see Vivo Energy Holdings purchase shares in Engen Holdings in exchange for an undisclosed shareholding in Vivo Energy with a possible cash consideration. Consequently, Vivo Energy will include additional 271 service stations across 9 new countries, and in Kenya, where Vivo Energy already operates.

Both entities will maintain their brands. In Kenya, Vivo Energy will acquire 17 of Engen’s service stations bringing their total service stations to 140, 36 stations short of the largest oil distributor, Total Kenya.

In Kenya, Vivo has the second largest Kenyan market in both petroleum and lubricant sales, with 16% and 35% share, respectively, after Total, which has 18% and 40% share, respectively. Vivo Energy, which is jointly owned by Vitol and Helios Investments, each owning 60% and 40% stake, respectively, took over Shell stations in Africa earlier this year after Shell pulled out of Africa’s oil retailing business.

Source: Cytonn Investments Limited report.

About Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. You can reach him on: (020) 528 0222 or Email: [email protected]

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