Economy
Alta Semper Quits Egypt’s Macro Group Pharmaceuticals
By Aduragbemi Omiyale
After the successful competition of its initial public offering (IPO), Alta Semper Capital has exited Macro Group Pharmaceuticals, a leading cosmeceuticals manufacturer in Egypt.
Since Macro Group became a portfolio holding of Alta Semper in 2017, the latter has supported the former in nearly doubling its market share.
Today, its diversified portfolio encompasses 112 products across a variety of high-growth therapeutic areas, with Alta Semper boosting Macro’s top line to $27 million by the end of 9 months of 2021, three times its 2017 revenues, while ensuring profitability and increasing its EBITDA and bottom-line to $11 million and $10 million respectively during the same period, nearly 3x its 2017 levels.
It was learned that shares of Macro Group began trading on February 10, 2022, in a Reg S, 144 A initial public offering under the symbol MCRO:CA on the Egyptian Exchange and the final offer price stood at EGP 4.85 per ordinary share or 2.8 bn EGP (equivalent to $178 million).
The co-founder and CEO of Alta Semper, Afsane Jetha, while commenting on the development, stated that, “We are proud of our successful journey with Macro Pharmaceuticals and its tremendous growth on the financial, operational, organizational and social impact level during the tenor of our partnership.
“It has been a pleasure working alongside such a skilled and motivated management team as they established a leadership position in Egypt’s burgeoning cosmeceutical space, and we congratulate them on their continued success.”
On his part, the Managing Director and Head of North Africa for Alta Semper, Mr Ahmed Rady, who also serves as Vice Chairman of Macro Group, disclosed that, “Since our investment in 2017, we have worked alongside Macro’s relentless management team to supercharge sustainable growth, expand operating margins, and lay the foundations for a more impressive future.
“We have successfully grown gross profit margin from 63% in 2018 to 80% in 9M 2021, grown EBITDA margin from 21% in 2018 to 41% in 9M 2021, and have achieved an impressive EBITDA CAGR of 89% over the period of 2018 to 2020. In an industry that is witnessing transformational growth, we believe Macro Group will continue to shape what is a thriving and rapidly expanding market.”
Alta Semper’s shareholder base has played a strategic role in improving Macro Group’s financial capabilities, as well as its sustainability and governance practices.
The firm’s investors include institutions such as the International Finance Corporation, the investment arm of the World Bank, IDI Emerging Markets, and Mbuyu Capital Partners, in addition to expert individuals such as former Citigroup Chairman Richard Parsons and businessman and philanthropist Ronald Lauder, heir to the Estée Lauder cosmetics company.
“It is gratifying to see this positive investment outcome for a company dedicated to improving quality of life for millions of Egyptians,” said Richard Parsons, Founding Shareholder and Chairman of the Investment Committee of Alta Semper. “We have a longstanding commitment to investing on the African continent for positive change. The success of Macro Group is emblematic of the type of outcome we seek.”
Ronald Lauder, a Founding Shareholder of Alta Semper, added that “Our mission as investors is to advance entrepreneurial activity across Africa in a manner that serves as a catalyst for sustainable development and broadly improves the quality of life on the continent.”
Macro Chairman and Co-founder, Dr. Ahmed El Nayeb, concluded “I am extremely proud of the organization we have built over the last 18 years, from its humble beginnings to becoming the market leader in Egypt’s cosmeceutical space and the first of its kind to go public in Egypt. The IPO marks yet another significant milestone for our business and we will continue to deliver on our vision of regional leadership within the cosmeceuticals and nutraceuticals space.”
Alta Semper has overseen Macro Group’s Environmental, Social and Governance enhancements, which has resulted in increased female workforce representation with women comprising 42% of total staffing and occupying 18% of senior management positions.
Community outreach through Medical Convoys in collaboration with the Egyptian Ministry of Health has directly benefitted over 8,000 patients since 2017. With an eye on Sustainable Development Goals, the Company has been able to deploy training programs outside of the urban centre of Cairo, across more rural areas in Upper Egypt and the Delta.
In tandem, Environmental practices have been improved through energy efficiency initiatives, waste minimization and switching to raw materials with a lower environmental impact. Macro remains committed to enhancing its ESG practices as well as striving to contribute to the enhanced achievement of the Sustainable Development Goals in the years to come.
Learn more at www.altasemper.com.
By Adedapo Adesanya
Market bellwethers, Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc, lifted the NASD Over-the-Counter (OTC) Securities Exchange by 2.08 per cent on Monday, August 3.
CSCS Plc, the Nigerian securities depository company, gained N10.00 to close at N112.00 per share compared with the previous session’s N102.00 per share, and FrieslandCampina Wamco Nigeria Plc advanced by N4.71 to quote at N152.64 per unit versus last Friday’s N147.93 per unit.
As a result, the NASD Security Index (NSI) added 92.14 points to finish at 4,523.85 points compared with the preceding session’s 4,431.71 points, and the market capitalisation appreciated by N55.31 billion to N2.715 trillion from N2.659 trillion.
Business Post reports that the price of MRS Oil Plc crashed during the trading day by N12.00 to N120.00 per share from N132.00 per share, and UBN Property Plc dipped by 3 Kobo to N1.90 per unit from N1.93 per unit.
Trading data showed that the volume of securities exchanged rose by 113.1 per cent to 1.5 million units from 690,990 units, and the number of deals climbed by 19.2 per cent to 31 deals from 26 deals, while the value of securities slid by 13.1 per cent to N65.2 million from N75.0 million.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 76.8 million units traded for N5.5 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) has introduced a 1.5 per cent stamp duty on eligible virtual asset transactions, with the tax deducted directly from the cryptocurrency purchased before it is credited to the buyer’s wallet.
According to the new guidelines issued on Monday, anyone buying Bitcoin (BTC), USDT or other cryptocurrencies in Nigeria will receive fewer digital assets due to the deduction.
This requires registered crypto exchanges and other Virtual Asset Service Providers (VASPs) to withhold the levy in the digital asset being traded and remit it to the government, marking Nigeria’s most comprehensive move yet to bring cryptocurrency transactions into the country’s tax net.
Unlike traditional taxes deducted from a customer’s bank account, the 1.5 per cent charge will be taken from the cryptocurrency itself, meaning buyers will receive less Bitcoin, USDT or other tokens than they paid for.
The tax body stated that “income tax deducted at source and stamp duty shall be remitted to the service in the originating token of the transaction.”
Besides the new stamp duty, the guidelines also clarify how income tax, Value Added Tax (VAT) and other tax obligations will apply to virtual asset activities such as trading, staking, mining and other crypto-related transactions.
To illustrate the new rule, the tax authority said a buyer who pays N1 million for one Bitcoin will receive only 0.985 BTC after 0.015 BTC is deducted as stamp duty and remitted to the government. When that Bitcoin is later sold, the next buyer will also have 1.5 per cent deducted from the cryptocurrency credited to their wallet.
The NRS said the guidelines are intended to provide clarity for taxpayers, crypto exchanges, peer-to-peer (P2P) marketplace operators, financial institutions, tax consultants and all participants in Nigeria’s virtual asset ecosystem.
According to the guidelines, the 1.5 per cent duty applies to eligible virtual asset transactions facilitated through registered exchanges and other recognised intermediaries. Where a cryptocurrency is used to complete a transaction that already attracts stamp duty under the law, the applicable duty on the underlying instrument will also be payable.
For crypto users, the implication is higher transaction costs, as eligible purchases will attract the 1.5 per cent stamp duty, while VAT on exchange service fees and income tax on taxable gains may also apply, depending on the nature of the transaction.
By Adedapo Adesanya
The Naira opened the week on a positive note, as it appreciated against the US Dollar by N3.39 or 0.25 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, August 3, to N1,364.83/$1 from N1,368.22/$1 last Friday.
However, it suffered a marginal decline against the Pound Sterling in the official market during the session by 10 Kobo to close at N1,837.89/£1 compared with the preceding session’s N1,837.79/£1, and lost 6 Kobo on the Euro to sell at N1,573.93/€1, in contrast to the previous trading day’s N1,573.87/€1.
At the black market segment, the Nigerian currency traded flat against the Dollar yesterday at N1,405/$1, and at the GTBank forex counter, it was unchanged at N1,374/$1.
Interbank FX transactions increased sharply as market makers’ activities raised total Dollar volume exchanged to $137.048 million, more than 132 per cent above $58.990 million in turnover at the previous close. The surge in turnover was driven by increased deals at the NFEM window. The central bank reported that deal count at the interbank FX window rose to 138 from 67 on Friday.
As for the cryptocurrency market, major tokens advanced despite ongoing uncertainty around unresolved Coldcard wallet sweeps that have drained hundreds of Bitcoin (BTC), while traders are watching whether bitcoin can hold above $63,000 through the US session. BTC rose by 1.70 per cent to $63,765.88.
Bitcoin treasury firm Strategy disclosed Monday it sold 1,638 bitcoin for about $105 million between July 27 and Aug. 2, its third sale of 2026, per an SEC filing.
Also, an attacker has moved about 1,816 bitcoins, or roughly $114 million, from more than 5,200 addresses since July 30 in a fourth wave of sweeps targeting BTC in Coldcard-generated addresses.
Cardano (ADA) appreciated by 6.7 per cent to $0.1959, Binance Coin (BNB) gained 1.5 per cent to sell for $590.82, Solana (SOL) jumped by 1.3 per cent to $73.72, TRON (TRX) soared by 0.9 per cent to $0.3286, Dogecoin (DOGE) also grew by 0.9 per cent to $0.0703, Ripple (XRP) advanced by 0.5 per cent to $1.07, and Ethereum (ETH) rose by 0.4 per cent to $1,863.33, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
