Alteo Limited, a renowned sugar producer related to the wealthy Mauritian Lagesse family, has bought an additional stake in Kenyan sugar producer Transmara Sugar Company Limited for $8.2 million.
Transmara Investment increased its stake in Transmara Sugar from 51 percent to 69.23 percent as a result of the deal, which coincides with Alteo’s plans to restructure its ownership.
According to an information memorandum released by Alteo, the additional stake was acquired with cash on hand and a $5.05-million debt contracted by Sucriere des Mascareignes Limited.
The move, which comes nearly seven years after Alteo acquired a controlling stake in Transmara to diversify its robust portfolio of sugar firms, is critical to Alteo’s strategic expansion plan. Alteo has announced plans to move its Kenya and Tanzania sugar production operations into a new investment vehicle, Miwa Sugar Limited, which was established earlier this year.
Alteo stated that the restructuring will allow the company to realize its property value creation strategy by establishing a governance and management structure focused on land management and development.
IBL Group, a multinational conglomerate led by the Lagesse family, and CIEL Limited, a leading conglomerate led by Mauritian tycoon Arnaud Dalais, both control a portion of Alteo.
Entities owned by the Lagesse family have recently expanded their activities through strategic restructuring and the acquisition of shares in high-performing consumer goods and retail enterprises.
In June, IBL Group collaborated with French financier Proparco and German sovereign wealth fund DEG to acquire a significant share in Kenya’s top grocery chain Naivas International for Ksh3.7 billion ($31.5 million).
The transaction brings Proparco, IBL Group, and DEG’s combined position in Naivas to 40 percent. It has a greater per-share valuation than the Ksh6 billion ($51 million) paid by the International Finance Corporation, Amethis, and DEG in April 2020 to buy a 30-percent stake in the company.
Regardless of the impact of the COVID-19 pandemic on Naivas, the sale highlights the company’s fundamental value as Kenya’s largest supermarket chain and demonstrates the economic value and opportunities embedded in the domestic retail sector and mass consumer market.
