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The National Basketball Association (NBA) has announced the formation of NBA Africa in a deal worth $1 billion.
The venture will be implemented with private equity firm Helios Fairfax Partners Corporation (HFP) and Nigerian multimillionaire businessman Babatunde Folawiyo.
NBA Africa is the league’s latest push to expand its operations on the African continent.
The entity will receive investments from strategic investors via a consortium led by Folawiyo, chairman and CEO of Yinka Folawiyo Group, and HFP, which is led by Tope Lawani, its co-CEO and co-founder, who also serves as a managing partner with HFP’s investment partner Helios Investment Partners.
The investors have acquired an eight-percent stake.
The deal is expected to create a $1-billion valuation for NBA Africa and will leverage investments from former NBA players Dikembe Mutombo, Junior Bridgeman, Luol Deng, Grant Hill and Joakim Noah, Bloomberg reported.
To kickstart operations, the NBA will invest in building infrastructure such as offices, courts and stadiums and also boost local interaction with fans and gifted players, NBA Commissioner Adam Silver said.
Folawiyo will join Lawani on the NBA Africa board of directors.
NBA Africa CEO Victor Williams will lead the board, which will also include Silver and NBA Deputy Commissioner and Chief Operating Officer Mark Tatum.
According to Forbes, Folawiyo has an estimated net worth of $650 million. His Yinka Folawiyo Group has interests in energy, agriculture, shipping and real estate.
