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30-Mar-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 busines which is now known as EMP Africa.
Washington D.C., June 22, 2005 -- EMP Global LLC ("EMP") announced that the Africa-focused private equity fund it advises, the AIG Africa Infrastructure Fund (the "Africa Fund"), has committed to a €16 million investment in Société Internationale de Plantations d'Hévéas ("SIPH" or the "Company"), Africa's leading rubber exporter. In March 2005, the Africa Fund invested €11.0 million ($14.3 million) in SIPH. The investment included the acquisition of 10.6% common stock, four-year convertible notes and warrants for €5 million in common stock which will increase the Africa Fund's total ownership to 20.9%.
SIPH processes and exports rubber through its two subsidiaries, Société Africaine de Plantations d'Hévéas ("SAPH") and Ghana Rubber Estates Ltd (‘GREL"). SAPH, the larger of the two subsidiaries, is located in Côte d'Ivoire and has five plantations covering over 25,000 Ha of land and five processing plants. GREL, Ghana's sole rubber processing operation, has a 11,600 Ha plantation and one processing plant. Both SAPH and GREL have developed successful outgrower programs with local farmers for the supply of additional raw rubber to their processing plants.
SIPH has developed a strong partnership with Michelin, the world's leading tire manufacturer. Michelin is currently the technical operator of both operating companies and provides access to the latest management techniques and fundamental research on species selection. SAPH and GREL are Michelin-certified suppliers. SIPH sells approximately 50% of its production to the tire manufacturer at market prices.
Thomas Gibian, Managing Director of EMP Global and Chief Operating Officer of the Africa Fund said: "Global demand for rubber is increasingly fueled by trends such as increased demand for automobile tires in China and Africa has abundant labor and some of the best growing conditions for rubber in the world. We are very optimistic that SIPH, the market leader in Africa, has excellent growth prospects."
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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, engages in private equity investment activities across the African continent. EMP Africa advises or manages funds in excess of $407 million from its offices in Washington D.C., 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