An international private equity fund wishing to expand into Africa approached us on its bid for a fully integrated beverages platform. The fund wanted to enhance their bid by incorporating W&I cover rather than demanding indemnification from the sellers.

The acquiring fund's investment committee required warranty and indemnity protection with a strong financial covenant. At the same time, the buyer wanted to make its bid attractive by not demanding long liabilities from the individual sellers.

Icen Risk is familiar with this jurisdiction, having insured a significant number of deals in the past and having in-house legal, tax and accounting expertise (including South African qualified underwriters). Prior to the buyer's obtaining exclusivity, our draft insurance policy enhanced the buyer's bid by offering the seller a true exit and the ability to avoid needing to tie up its sale proceeds in escrow until the conclusion of the warranty period. On inception, our policy enhanced the protections the buyer received from the seller under the SPA.