QG Investments Africa Management (QGIAM), the private equity arm of Africa focused investment firm Quantum Global, has today announced that the sale of its interest in Savannah Cement, a leading Kenyan cement producer, has been completed following the receipt of regulatory approvals.
Quantum Global’s investment was designed to support the cement producer on a number of value creation initiatives, including the development and launch of new products and the optimisation of existing facilities.
“We are delighted to have partnered with Savannah Cement in one of the critical industry sectors in East Africa, advancing together to aim to close the existing infrastructure gap in Africa,” Jean-Claude Bastos de Morais, Quantum Global’s Founder and Group CEO, commented.
“The exit from this investment is testament to the success of our approach of deploying capital in transformative sectors of key importance in Africa at the right time,” he said.
“Our active partnership with Savannah Cement and its management team has created significant value and we are pleased to have been involved in such a critical growth phase for the company,” said Martin Bachmann, Group Head of Active Management of Quantum Global.
Quantum Global Group held the asset since 2015 through its $1.1 billion (Ksh114 billion) Infrastructure Fund, which is one of the most significant private equity funds in Africa solely focused on infrastructure developments.
Having started operations in 2012, Savannah Cement operates in a buoyant market driven by rising demand for cement products in a growing region.
Savannah Cement is a state of the art, eco-friendly cement grinding plant with a capacity of 1.5 million tons a year, located in Athi-River, ca. 30km from Nairobi. Successful in capturing several regional infrastructure deals to grow its market share, Savannah Cement quickly became a major regional player.
As part of the Infrastructure Fund, the Group so far has committed a significant portion of the capital for the construction of a deep-sea port in the Angolan province of Cabinda and for the development of an agri-processing plant for juice, water and wine processing and packaging geared towards the Southern African Development Community (SADC) region.