ENeRgize - Spring 2016
Welcome to our Spring edition of the ENeRgize newsletter, focusing on the latest news and views from the Energy & Natural Resources team at Charles Russell Speechlys.
In the build up to and following our recent trip to the Investing in African Mining Indaba conference in South Africa, the team have been busy writing new articles around Shareholder Activism and the opportunities around investing into the African continent and things to be mindful of.
Our article on Shareholder Activism seemed to be quite timely as it was certainly something that was hotly debated at the conference, in particular in respect of the critical importance of good governance and pro-active management.
Another couple of key themes that came out of the conference, more geared towards the mining sector. Firstly, the return to cautious optimism in the long term in respect of the positive increase in the price of gold and other commodities, whilst nerves do still remained very frayed around the issue. Secondly, the move to alternative sources of fundraising, looking at Family Office and private individuals as potential investors into mining projects.
Shareholder Activism: Be prepared
Levels of shareholder activism have grown significantly in recent years, with investors in public companies increasingly willing to seek to intervene directly in the management of companies in which they hold shares. A survey by Activist Insight in 2015 found that more than 300 companies worldwide were targeted by activists last year, up from fewer than 150 in 2010. A number of these were listed companies in the natural resource industries, miners included. This article looks at some of the strategies used by activists and measures companies can adopt in response. Click here to read more.
The Land of Plenty
Once the preserve of banks and large multinationals, Africa is being opened up to private clients through a range of new platforms. Africa has always been a place of opportunity. While the continent has historically been on the radar of multi-nationals, banks, large private equity funds and government development institutions, we are seeing a new wave of private businesses, local private equity funds and other international investors such as philanthropists, becoming deeply involved in the 'Africa Rising' story.
The continent has become more accessible due to a good track record of historical investors, the return of the African diaspora to the continent and also, the extraordinary economic growth of countries such as Côte d'Ivoire, Tanzania and Nigeria, all of which increase the number of investment opportunities. Click here to read more.
If you have any concerns around these themes or other issues within the Energy & Natural Resources, please do get in touch with your regular contacts or alternatively Clive Hopewell or Chris Putt.
News & Insights
Charles Russell Speechlys bolsters Middle East practice with new corporate partner
Charles Russell Speechlys further strengthens its Middle East offering with the hire of corporate partner William Reichert.
Charles Russell Speechlys advises Daystar Power Group and founder on $10 million equity stake by Verod Capital Management and Persistent Energy
Daystar Power Group is a pan-African electricity company specialising in the generation of solar energy.
Predator Oil & Gas Holdings Plc issues a convertible loan note to raise £1.5 million
Predator is an oil and gas exploration company.