SouthBridge Group, an innovative, pan-African financial advisory and investment firm, working with corporates, sovereigns and multinationals across the Continent, concluded two significant transactions in the Republic of Togo.
“We are delighted with the support provided by the Southbridge Group for the completion of these two transactions at the heart of the National Development Plan and the Government's Roadmap. The commitment and professionalism of Southbridge's team was key to the successful completion of these two transactions despite the health crisis. It is once again proof of the attractiveness of the Togolese economy,” commented Sani Yaya, Togo’s Minister of Finance.
SouthBridge advised the Government of Togo to facilitate a strategic partnership with Olam International Limited, a global agri-business firm, headquartered and listed on the Singapore Exchange (SGX), and the Arise Special Economic Zone, an Olam subsidiary, jointly owned with the Africa Finance Corporation.
The State of Togo and Arise signed an initial agreement on July 8th, 2020, which created an integrated industrial platform in order to attract investors and develop multi- sector industrial collaborations within the country including the production and processing of agricultural products, locally.
As per the agreement, this project will be developed by a private company, owned and operated by the State of Togo (35%) and Arise (65%) trading as Plateform Industrial Adétikopé SAS (PIA SAS). The company will be considered as a ‘zone developer’ pursuant to Togolese Free Trade Zone laws. The total investment for the project is EUR200 million.
Additionally, the Togolese government sold 51% of Nouvelle Société Cotonnière du Togo (NSCT), to Olam, for EUR34.4 million. It includes EUR15.3 million for Olam’s equity stake plus 51% of net working capital (EUR19.1 million). Therefore, Olam pays a 70% premium to the Togolese Republic for this acquisition.
Also commenting on the transaction, Donald Kaberuka, Chairman and Managing Partner of SouthBridge Group said: “They are a landmark for Togo and its partner Olam. It is a step change in the economic transformation of the country and its cotton/textile industry. This partnership between the global agri-business player Olam and the Republic of Togo augurs well for the country’s economy. SouthBridge is proud to have been associated and facilitated this outcome”.
Lionel Zinsou, Chairman and Managing Partner of SouthBridge Group commented: “Our involvement with these operations fully corresponds to the Group ambition. We intend to contribute to the emergence and uprising of Africa and Togo, which remain at the forefront with these two transactions. They demonstrate how much having a global vision on the entire value chain from production to industrialisation is crucial for our countries to capture added value and build future growth”.
Frannie Léautier, Senior Partner of SouthBridge Group, also commented: “The development benefits of this public-private partnership are transformational, and I am very honored to have worked with the Government of Togo, Olam and Arise to deliver on these transactions”. When we started working intensively on these two complex transactions, the pandemic hit. We continued to work seamlessly via Zoom and Teams, bringing together the key stakeholders from four continents and five time zones, managing to close this complex transaction in record time, 100% negotiated by video links”.