Stanchart Africa invests Sh6.4b in export firm
The Standard | 18 January 2012
By Jackson Okoth
ETG's CEO Mahesh Patel, MD Ketan Patel and CFO Vasudev Barkur at the group's Singapore office. The company has at least 3 farming estates in Tanzania, Zambia and Mozambique totalling 60,000 hectares.
Standard Chartered Bank’s Private Equity division has invested $74 million (Sh6.4 billion) to acquire a minority stake in ETC Group Mauritius (ETG) in a deal that values the company at over $500 million (Sh43.5 billion).
ETG is a leading integrated agricultural supply chain manager in East and Southern Africa.
This is further demonstration of the Bank’s commitment to the sustainable development of Africa’s agricultural sector, leveraging the Bank’s private equity capabilities and expertise.
ETG originates, processes and distributes soft commodities primarily in Sub-Saharan Africa, India and China.
The supply chain will use the funds to boost its leading positions in core markets as well as expand into new geographies.
Ronald Tamale, Director in Standard Chartered’s Africa Private Equity team, commented, "Given that more than 60 per cent of the world’s arable land is in Africa, the African agri-sector holds considerable growth potential. ETG, with its East African origins, is a long-standing client of the Bank. We look forward to enhancing our support of the group’s management team, promoting their robust growth strategy and vision."
ETG’s African footprint is closely aligned with Standard Chartered’s presence in Africa.
In addition, the Bank’s Middle East and Asia network provides ETG with additional value in potential trade and business links over the long term.
Ketan Patel, Managing Director at ETG said, "Standard Chartered has been a valuable financial partner to us for many years. This investment is testament to the Bank’s deep understanding of our business, proactive recognition of and commitment to our growth potential. ETG has predominantly funded its growth from internal sources for the last 30 years. This capital investment enables us to take our business to the next level."
Since 2008, Standard Chartered’s Africa Private Equity team has invested nearly $400 million (34.8 billion) into entrepreneurial African companies in multiple sectors.
The team is committed to supporting strong management teams who demonstrate positive growth potential within their area of expertise.
The Africa Private Equity team, with offices in Johannesburg and Lagos, complements the Bank’s International private equity capabilities in Asia and the Middle East.
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