PRESS RELEASE – Abidjan, Accra, Dakar, Johannesburg (MMD Newswire) August 22, 2011 – - RMG Concept Ltd. (“RMG”), a leading distributor of crop protection products in West Africa with primary operations in Abidjan, Côte d’Ivoire, today announced a partnership with Wienco (Ghana) Limited, a leading supplier of agro inputs in agriculture in general and cocoa in particular in Ghana. In connection with this partnership, RMG also announced a €50 million financing arranged by LiquidAfrica Holdings (“LAH”) of South Africa, and led by Advanced Finance and Investment Group (“AFIG Funds”), manager of the Atlantic Coast Regional Fund (“ACRF”), with debt lead arrangers Standard Bank of South Africa.
The proposed partnership allows RMG to leverage Wienco’s position as a leading supplier of agro inputs to the Ghana economy, and in particular to take advantage of Wienco’s experience in the development of private sector initiatives aimed at improving yields and revenues amongst smallholder farmers. These include Wienco’s widely successful Cocoa Abrabopa scheme, which supports farmers through the supply of fertilizer and agro-chemicals on credit, training in input application methods, as well as key aspects of business training.
For Wienco, the alliance provides the opportunity to expand its smallholder concept to over fifteen new markets in West Africa.
According to Mr. Daniel Ruegg, RMG’s Chief Executive Officer: “Our partnership with Wienco represents a unique opportunity for RMG. We see significant scope to add value to a more diversified agricultural output in the economies in which we operate, and ultimately contribute to the economic development of the region.”
“As we looked at the tremendous opportunity presented by the agricultural sector of many economies in West and Central Africa, we were drawn to RMG’s strategy-led business model, and experienced and disciplined management team. We were also impressed with RMG’s positioning as one of few companies in the West African region with a formulation and packaging plant for both solid and liquid agro-chemicals, a compelling competitive advantage that allows it to adapt quickly to any changes in market conditions and to respond rapidly to specific client needs.” said Mr. Henri Wientjes, Chairman of Wienco (Ghana) Limited.
Commenting on the capital raising, Mr. Cyrille Nkontchou, CEO of LAH, said: “ACRF, as RMG’s principal equity partner, participated in the €50 million financing round through a total commitment of $14 million (approximately €10 million) with the other €40 million coming from Standard Bank and structured in the form of senior debt and working capital facilities.”
Speaking on behalf of ACRF, Papa Madiaw Ndiaye, CEO of AFIG Funds, said: “We are pleased to join RMG in this partnership with Wienco. We strongly believe that RMG’s competitive positioning and client value proposition will be greatly enhanced by its alignment with a market leader such as Wienco.”
NOTE TO EDITORS
About RMG Concept Ltd.
RMG Concept Ltd.(“RMG”) is involved in crop protection in West & Central Africa. RMG holds exclusive rights to develop, formulate and distribute the full range of Syngenta products in Côte d’Ivoire and fifteen other countries in West & Central Africa including Benin, Burkina Faso, Central African Republic, Chad, Gambia, Guinea, Guinea Bissau, Equatorial Guinea, Liberia, Mali, Mauritania, Niger, Sierra Leone, Togo and Senegal. The company distributes a range of crop protection products including herbicides, insecticides and fungicides covering all crop needs.
About Wienco (Ghana) Limited (www.wienco.com)
Wienco (Ghana) Limited (“WGL”) was established in 1979 as a joint venture Ghana-Dutch company involved in businesses in the agricultural sector. WGL currently specializes in the importation and distribution of fertilizers and crop protection agro-chemicals including insecticides, pesticides and fungicides, primarily for the cocoa, maize and cotton sectors in Ghana. The company has rights to sell branded products for leading global suppliers in the Ghanaian market. WGL is also involved in the distribution of imported seed varieties and other agricultural inputs to maize farmers and also markets their production.
About LiquidAfrica Holdings Limited (www.liquidafrica.com)
LiquidAfrica Holdings (“LAH”) is an investment and advisory boutique operating from offices in London and Johannesburg. LAH provides corporate finance and advisory services to African companies and assists them with raising capital to expand organically or via M&A. It also offers international private equity funds as well as portfolio investors interested in participating in various sectors on the African continent with an opportunity to gain this exposure.
About Advanced Finance and Investment Group (www.afigfunds.com)
Advanced Finance and Investment Group LLC (“AFIG Funds”) is a private equity fund management company with offices in Dakar, Johannesburg and Washington, DC. Atlantic Coast Regional Fund LLC (“ACRF”), the maiden fund of AFIG, is a USD 72 million regional fund focused on 29 countries in West and Central Africa. ACRF considers investments in all sectors, and targets strong growth companies, preferably with a regional scope, in its target region.
About Standard Bank of South Africa (www.standarbank.co.za)
Standard Bank Group is a leading African banking group headquartered in South Africa, and focused on global emerging markets. It is South Africa’s largest bank by assets and earnings, and is distinguished by its extensive operations in 17 African countries. Outside the African continent, Standard Bank Group’s operations span 15 countries.
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