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31-Jan-2005
Note: In December 2005, EMP Africa was created through a spin-out from EMP Global LLC. The references to EMP Global LLC in this press release refer to the part of the business which is now known as EMP Africa.
EMP Global's AIG African Infrastructure Fund commits US$40.0 million to Veolia Water Maroc
EMP Global LLC ("EMP") announced that the Africa focused private equity fund it advises, the AIG African Infrastructure Fund (the "Africa Fund"), has committed to investing US$40.0 million in Veolia Water Maroc ("VWM"), a leading Moroccan operator of power and water distribution concessions. The US$407 million dollar Africa Fund is managed by EMP Africa, an affiliate of EMP Global LLC. EMP Africa invested alongside Veolia Water AMI ("VW AMI"), a wholly owned subsidiary of Veolia Environnement, the world leader in the provision of environmental services. EMP Africa invested US$10.1 million in January, 2005 and expects to fund the balance of its commitment by the end of the year.
Since 2002, VW AMI has operated the water distribution, electricity distribution and wastewater management concession for Tangier and Tétouan under the name Amendis. VW AMI subsequently acquired a similar concession for the territory of Rabat-Sale and re-branded the company Redal. Both companies have since benefited tremendously from Veolia Environnement's over 150 years experience in the delegated management of utilities and have seen great improvements in their performance and profitability. Amendis' customer base has been growing at 6% per annum from 2002-04, while Redal's has grown at greater than 7%. Profitability has improved significantly due to improvements in operating efficiency and the successful implementation of cost controls.
As part of a reorganization, VWM will soon become Veolia Environnement's exclusive investment vehicle for all of Morocco. When this is accomplished, VWM will own 100% of Redal, which serves over 310,000 water and 380,000 electricity customers in the territory of Rabat-Sale, and at least 84% of Amendis, which serves over 221,000 water and 280,000 electricity customers in the cities of Tangier and Tétouan. VW AMI expects to have completed the reorganization by the fourth quarter of 2005, at which point EMP Africa will fund the remainder of its commitment.
Thomas Gibian, COO of the Africa Fund, said: "Veolia Water Maroc presents a unique opportunity to invest alongside a world-class sponsor in an area where the sponsor has a proven ability to achieve dramatic turn-arounds and create significant value. The macroeconomic prospects of Morocco, especially Northern Morocco, are also a very attractive aspect of this deal."
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About EMP Global LLC
EMP Global LLC is the largest private equity fund advisor focused on emerging markets and manager of six private equity funds totaling $5.7 billion invested in Africa, Asia, Latin America, Europe and the Middle East. EMP Global has over ninety professionals based across eight offices in the regions in which it invests.
About EMP Africa
EMP Africa, an affiliate of EMP Global LLC, comprises the Company's private equity investment activities across the African continent; namely advising or managing funds in excess of $407 million from its offices in Washington, Tunis, Abidjan and Johannesburg.
Investor enquiries:
Hurley Doddy, Tel: +1.202.331.9051
Email: doddyh@empw.com
Media enquiries:
Tristan B. Peniston-Bird, Tel: +1.212.515.1933
Email: tpeniston-bird@gavinanderson.com
Montieth M. Illingworth, Tel: +1.212.515.1972
E-mail: millingworth@gavinanderson.com
EMP Website: www.empwdc.com