Experience
- Cliffe Dekker Hofmeyr (Kenya) represented N22 Africa Fund (D) and N22 Africa Fund (E), the leading private equity fund established in Sweden. Our Kenya-based corporate/M&A team assisted Norrskken 22, a technology growth fund, in conducting a due diligence on Vee8 International Holdings, the target company, an automotive technology development company that builds solutions aimed at enabling and enhancing commerce within the automotive sector; and its subsidiaries in Kenya, Uganda, Nigeria and Ghana. We were further involved in negotiating and drafting two SAFEs and two side letters pertaining to two tranches of investments being made to the target. The due diligence required extensive expertise in connection with compliance requirements to the automobile industry. This transaction involved conducting a due diligence over five entities located in the US, Nigeria, Kenya, Ghana and Uganda over a short period of time. Due to the level of urgency, we conducted an innovative, partly limited due diligence over the areas that were considered high-risk and carried out a confirmatory due diligence over the low-risk areas. This allowed us to obtain warranties on the low-risk areas and indemnities over those areas considered high-risk, with minimal push back. Further, negotiating the rights in the SAFE proved challenging as the target company had existing SAFE agreements with investors and was looking to obtain additional investment from other investors. We therefore had to consider what existing investors have been granted based on their level of investment and negotiate the rights our client was requesting for, taking into consideration that other investors were quickly investing into the target.