JCDecaux SA (Euronext Paris: DEC) has announced the signing of a contract for the acquisition, in partnership with a community owned investment company, Royal Bafokeng Holdings (shareholding split 70/30), of Continental Outdoor Media, the leader in outdoor advertising in Africa.
The finalisation of the transaction is subject to the usual regulatory terms and conditions.
Founded more than 40 years ago, Continental Outdoor Media, a pioneer in outdoor advertising in Africa, is involved primarily in large format billboard advertising but also in street furniture and transport sectors. With 266 employees, Continental Outdoor markets 35,000 advertising faces in fourteen countries; Angola, Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe.
JCDecaux, which already has some operations in South Africa, Algeria and Cameroon will now have reach in 13 new countries – no doubt allowing it to accelerate development across the entire continent.
Jean-Sébastien Decaux, CEO Southern Europe, Belgium and Luxembourg, Africa and Israel of JCDecaux, said “The acquisition of Continental Outdoor, alongside Royal Bakofeng Holdings with whom we are very pleased to collaborate, is a key stage in our development in Africa and a unique opportunity to utilise our expertise in this continent with unequalled growth potential. Thanks to this transformative operation, JCDecaux will broaden its presence to 13 new countries and become the No. 1 in outdoor advertising on the African continent.
This strategic acquisition will not only improve our growth profile in emerging countries but also gives our business in this region a new dimension. A long-term investment, it comes at a time when Africa, whose population is expected to double in the next 30 years, is undergoing mass urbanisation. In order to accommodate their new inhabitants, the cities have growing infrastructure needs which JCDecaux, with its economic model of financing street furniture through advertising, will meet by developing high-quality products and services such as the Group has been providing cities for 50 years.
We are therefore very pleased and proud to be able to use our expertise and innovation, notably in digital, to service local authorities and African citizens as well as offer African and international advertisers and their brands exceptional opportunities on this continent, a “new 21st century frontier”.”
The Group will benefit from the support and partnership with Royal Bafokeng Holdings (RBH) – RBH is a high quality and long-term investor, managing assets worth €2.9 billion. Their unique investment model was set up to deliver intergenerational income to serve the social development needs of the Royal Bafokeng community. This community consists of 100,000 members who reside in Phokeng which is located in the North West province of South Africa. RBH’s long-term investment approach, coupled with their commitment to the African markets resonated with JCDecaux, leading to the formation of this strategic partnership which leverages the strengths of both partners.