Mr Wang’ombe Kariuki, the CAK director general. FILE PHOTO | NMG
Summary
- US-based TPG Capital has bought a 33.9 percent stake in dairy processor Maziwa Ltd, a year after it purchased a 44.04 percent stake in Cellulant Corporation.
- The deal approved by the Competition Authority of Kenya (CAK) will see TPG Capital’s subsidiary Pledge Holdco Ltd take part in running the business that distributes milk and milk-related products across Kenya, Uganda and Zambia.
- In its disclosures, TPG Capital said it also has interests in Kenya’s Dodla Dairy Ltd, thanks to a 2017 purchase of a Sh5 billion stake in India-based parent company, where it processes one million litres of fresh milk daily received from 250,000 farmers.
US-based TPG Capital has bought a 33.9 percent stake in dairy
processor Maziwa Ltd, a year after it purchased a 44.04 percent stake in
Cellulant Corporation.
The deal approved by the
Competition Authority of Kenya (CAK) will see TPG Capital’s subsidiary
Pledge Holdco Ltd take part in running the business that distributes
milk and milk-related products across Kenya, Uganda and Zambia.
“The
Competition Authority of Kenya has approved the proposed subscription
of 33.9 percent of the issued share capital and joint control of Maziwa
Limited by Pledge Holdco Limited unconditionally,” said the approval
signed by CAK director-general Wang’ombe Kariuki.
In
its disclosures, TPG Capital said it also has interests in Kenya’s Dodla
Dairy Ltd, thanks to a 2017 purchase of a Sh5 billion stake in
India-based parent company, where it processes one million litres of
fresh milk daily received from 250,000 farmers.
The CAK
said TPG’s entry into the Kenyan market will not give it unfair
advantage over its competitors since Maziwa Ltd is a minority player
with 0.9 percent market share to Brookside Dairy’s 40 percent, Sameer
(14 percent), New KCC (25 percent), Githunguri (12 percent) and Pascha’s
1.7 percent.
“Post-transaction, the merged entity will have a market share of
3.9 percent. This is unlikely to raise competition concerns since its
market share will be considerably low. Further, it is anticipated that
the merged entity will face competition from processed milk players as
well as informal milk producers,” says the CAK report.
TPG
Capital made news last year when it paid Sh4.8 billion to acquire a
stake in Cellulant, a payments solutions provider with operations in 33
African countries serving banks and telcos.
Maziwa,
wholly-owned by Mauritius-based Bainne Ltd distributes milk and
milk-related products under the brand name ‘Lola’. Without disclosing
the value of the transaction, the CAK said Maziwa and Dodla, whose
products are sold across Kenya and beyond where their 2018 combined and
relevant turnover surpassed Sh1 billion, necessitated a full merger
analysis at a national scale.
No comments:
Post a Comment