Liberty still studying tricky Nigerian scene

THE billion rand set aside for expansion is burning a hole in the pocket of Liberty Holdings’s new boss, Thabo Dloti.

Dloti’s dilemma is that he desperately wants the life company to set up shop in Nigeria, but the lack of options as well as the new wave of terror attacks make it tricky.

“We continue seeking acquisitions. We continue pressing hard to get an acquisition this year,” said Dloti.

Liberty, which controls Stanlib, is keen to acquire an asset- management business as well as an insurance business.

But it’s proved tough to find a business that fits the bill.

“What’s been difficult for us is to find a substantial business to buy. So we had to adjust our expectations,” Dloti said.

But Dloti’s discomfort was clear when he emphasised that while Liberty won’t be delaying plans to enter Nigeria, he is worried about the violent attacks in the country and the ripple effects on the economy.

Already, Liberty has walked away from three possible deals, following in the footsteps of FirstRand, which walked away from a deal to buy Nigeria’s Sterling Bank in 2011.

Most businesses that South African JSE-listed companies tried to buy in Nigeria are privately run and not accountable to shareholder scrutiny.

Dloti said that some Nigerian companies were simply reluctant to be run along the lines of a South African business. Another issue was how to value those Nigerian companies.

South Africa-Nigeria Chamber of Commerce CEO Dianna Games said investors needed to do due diligence and scrutinise their partners, competitors and the business landscape before putting down cash.