Africa Lighthouse Capital acquires majority stake in FSG

Africa Lighthouse Capital punched-the-air this week as some regional competition authorities clapped hands to its proposed acquisition of more shares in Funeral Service Group (FSG), funeral services company.

The company has bid for the 37.62 percent of shares at P 250 million—making it the biggest deal to be made by a private equity funds in Botswana– that were in the hands of Botswana Life Insurance Holdings.

The move saw Africa Lighthouse Capital’s shares in the company surging to 57.62 percent– making it the majority shareholder.

“As announced on the 5^th and the 23^rd of August 2022, BIHL would like to inform shareholders that BIHL has entered into a transaction which involves the sale of BLIL’s 37.62 percent shareholding in FSG Limited (FSG) which, together with subsidiaries, is known as Funeral Services Group. The transaction was executed by way of an auction process to establish a market price and maximise value for BIHL’s shareholders.

“This culminated in BIHL achieving a cash consideration of P 250 million, of which P 250 million will be paid in cash in closing.

“Shareholders are advised that all regulatory approval for the transaction have been received and all conditions precedent have been fulfilled hence the transaction was implemented on the 7^th of February 2023,” BIHL said in a note to its shareholders.

Africa Lighthouse first acquired 20 percent of the company in 2020 from Alan Gray which is a pension fund management outfit.

FSG is a regional giant in the funeral service in the southern African region with branches in Botswana, South Africa, Zambia and Zimbabwe.

Its key markets are Botswana and Zambia.

Last October Botswana Competition Authority gave a thumbs up to the proposed deal and followed on the heels by Zambia.

South Africa and Zimbabwe are regarded as insignificant market.

The company founded by the trail-blazing Mike Nikolic and his wife Lynnett – who gave the company its popular name Lynns, is involved in coffin and casket, funeral parlour, tombstone manufacturing, short term insurance, repatriation of deceased and private cemetery- Phomolong in Phakalane.