Release: 9th September 2009

 

Ugandan Project Attracts Investors

TLG Capital buys a stake in joint venture between Cipla Ltd India and Quality Chemicals Ltd Uganda

 

Newly formed TLG Capital is defying the economic downturn with its first investment in Quality Chemicals Industry Ltd (QCIL). This will be followed by further investments of deploying intelligent capital in frontier markets. Quality Chemicals Ltd (QCL) joined forces with Cipla to launch QCIL – the first pharmaceutical company manufacturing antiretroviral (ARVs) and anti-malarial drugs in Africa. With the full support of the Ugandan Government, QCIL is set to produce 6 million tablets per day in the near future.

 

QCIL has constructed a £20 million plant in Kampala, Uganda which has been licensed by the National Drug Authority. The company has also been vetted by the International Committee of the Red Cross (ICRC) and pre-qualified by Drugs for Neglected Diseases initiative (DNDi) ensuring buy in from these organisations.

 

Despite difficulties in the world financial markets and a general slowing of private equity investment into Africa, QCIL has emerged ahead of the game with a sale of a structured transaction to an international investor group - TLG Capital. TLG Capital was set up to invest and work with companies in frontier markets that have often evaded the radar of international based dedicated Africa funds.

 

Zain Latif, Principal of TLG Capital says: “For us, QCIL remains one of the most promising opportunities in the East African region. The production of key ARV and ACT drugs combined with the strength of management has convinced us of the long-term potential of the plant. From the beginning, we share the same goals as management and we are closely working together to realise the great vision we have for the company. “Fundamentally QCIL is the epitome of what TLG Capital stands for. We want to focus on ‘being the solution’ as opposed to ‘talking about a solution’. Intelligent deployment of capital with an ethical angle and focusing on maturing indigenous businesses will do more for Sub-Saharan African development than any other measure.”

 

Zain Latif has a unique insight into the African Markets gained through his experience stretching from HSBC to Merrill Lynch and most recently at Goldman Sachs where he was involved in Emerging Markets, particularly Africa. Frederick Mutebi Kitaka, Chief Financial Officer of QCIL comments: “This project will result in significant positive changes in our country from disease control to price reduction in ARVs and anti-malarial medication. As a joint venture, it will gain from the manufacturing expertise of Cipla and the pharmaceutical management and distribution expertise of QCL. We have received a great amount of support from the Government at every step and we can proudly say that we have found an African solution to an African problem.”

 

TLG Capital was represented by Latham & Watkins, with a deal team led by Craig Stoehr from the firm's Doha, Qatar office. Stoehr says: "Given our extensive experience in the global pharmaceuticals industry as well as our experience in sub-Saharan Africa, we are pleased to have advised TLG Capital on this important transaction, and are proud to be involved with such a worthwhile business. TLG Capital's investment in QCIL provides further financial and board-level management support that will help the company build on its accomplishments thus far." 

 

Media enquiries:

 

For further information, imagery or interviews please contact: Harika Chadha on +44 (0)20 7499 9591 or harika.chadha@tlgcapital.com

Release: 1st December 2009

 

TLG Capital expands footprint in Africa with largest stake in Ghana Cancer Centre

Healthcare in Africa gets a boost from international investors

 

TLG Capital, a frontier market fund, becomes the largest shareholder in the Swedish Ghana Medical Centre (SGMC), a private health care provider located in Ghana. SGMC plans to offer state-of-the-art cancer care services to the entire West Africa region with the development of a $40m “centre of excellence" across two phases.

 

The first phase includes the provision of a basic cancer care unit with radiotherapy based on linear accelerator treatment, diagnostic and outpatient services. At a later stage, SGMC is expected to provide advanced radiotherapy and Gamma Knife treatment for the brain with the capability of treating more advanced cancers. The facility will begin treating patients in Q1 2010. TLG Capital is the largest shareholder in SGMC in a total deal size of over $15m in the first phase. 

 

Commenting on the investment, Mr. Zain Latif, Principal of TLG Capital said: “This investment is perfectly aligned with TLG’s ethos that commercial returns and ethical investments are not mutually exclusive in frontier markets. SGMC will not only provide a much needed service to the region, but also employment opportunities for specialized African medical professionals. The centre will make advanced cancer treatment available locally and at a competitive price, allowing a larger proportion of the population access to treatment whilst remaining attractive to investors.”

 

Cancer care is grossly undersupplied in the whole West African region with some 250 million inhabitants. Currently Ghana has only two cancer treatment units for a population of 23 million, as compared to a developed country such as Sweden which has more than 70 units for a population of 9 million. Ghana alone has roughly 55,000 new cancer cases every year.

 

Henry Broni-Amponsah, Chairman of SGMC, said: “As a Ghanaian who has lived many years in Sweden, l am happy to be part of the creation of such a high standard medical facility for cancer treatment in Ghana and the West Africa region. I am most happy that access to the treatment of such a painful and deadly disease will be made a bit easier and affordable for the people of West Africa.”

 

Partners in this project include Scandinavian Care, Swedfund, Elekta, and Fidelity Equity Fund II.

 

This is TLG’s second investment in healthcare in Africa following on from its investment in Quality Chemical Industry Limited, the first pharmaceutical company manufacturing antiretroviral (ARVs) and anti-malarial drugs in Africa.

 

Media enquiries:

 

For further information, imagery or interviews please contact: Harika Chadha on +44 (0)20 7499 9591 or harika.chadha@tlgcapital.com

Release: 22nd March 2010

 

TLG Capital sails into Cambodian waters

The Mekong River's most experienced cruise boat operator gets navigational support

 

TLG Capital expands its footprint in frontier markets with the addition of Compagnie Fluviale du Mekong (CFM), a leading river cruise company based in Cambodia, to its portfolio. This represents TLG Capital's third company under management following its first two investments in Uganda and Ghana.

 

CFM is the oldest company to offer river cruises along the Mekong River. Their current fleet of four ships offer tourists the opportunity to explore cities and remote villages alike on the Mekong in both Vietnam and Cambodia. Cambodia alone attracts close to 2 million tourists and is expected to more than double in the next 5 years with United Kingdom, France, Germany, and Australia representing the majority of the tourists.  

 

Naidah Yazdani, CEO of CFM says: "A partnership with TLG Capital represents a great opportunity for CFM to seek strategic guidance in diversifying our revenue lines and market scope.  Being the first company on the Mekong to offer river cruises to the market, we have extensive experience with a variety of terrains in the region and preferences of tourists as we seek to grow our business."

 

Zain Latif, Principal of TLG Capital says: "We see the tourism market growing substantially in the years to come and Cambodia is a country that has great potential. We are confident that our investment exposure will be fulfilled through companies like CFM where our aim is to promote social development and achieve commercial returns. The company employs over 85 employees, contributing positively to the local market."

According to the Ministry of Tourism of Cambodia, the tourism industry in the country has helped accelerate the economy, create jobs, and alleviate poverty which is one of the foremost Millennium Development Goals of Cambodia. The Millennium Development Goals are eight international development goals that Cambodia along with all the other United Nations member states have agreed to achieve by the year 2015.
 
Investment in transport infrastructure in Southeast Asia is expected to reach $32 billion USD from 2010 to 2014 which will cascade to better mobilisation of business and tourism in the region.

 

Media enquiries:

 

For further information, imagery or interviews please contact: Harika Chadha on +44 (0)20 7499 9591 or harika.chadha@tlgcapital.com

Release: 10th November 2009

 

City bankers join TLG Capital's growing team

New hires bring with them capital market and risk management experience

 

TLG Capital expands its team hiring Jamel Larbi from Merrill Lynch and Shaheryar Mian from Hewitt Associates. TLG Capital is a Frontier Markets entity aiming to deploy intelligent capital with ethical considerations. Both Mr. Larbi and Mr. Mian will report directly to Mr. Zain Latif, Principal of TLG Capital.

 

Prior to joining TLG Capital, Mr. Larbi was part of the Emerging Markets Capital Markets team at Merrill Lynch in London. Mr. Larbi worked on transactions across corporates, financial institutions and sovereigns clients in Emerging Markets, notably MENA, Sub-Saharan Africa and Eastern Europe.

 

Shaheryar Mian joins from Hewitt Associates where he worked in the Global Investment Practice and performed investment analysis and performance reviews across major asset classes. Previously he was at Lloyds TSB Bank, London and New York, where amongst other roles he was part of Financial Institutions group that managed cross-border relationships with investment banks and insurance companies.

 

Mr. Latif comments: “Jamel brings capital market experience to TLG Capital, and this will complement our business as we seek to build on our initial successes. Shaheryar’s expertise in risk management, analysis and investments is invaluable to us. Strict internal risk standards and managing our assets effectively is a priority for TLG Capital and as we project further growth, it has prompted us to seek additional resources to ensure that we maintain the highest standard. I am delighted to have both Shaheryar and Jamel onboard.”

 

Shaheryar Mian comments: "As the finance industry continues to evolve, TLG Capital is positioning itself to take advantage of changes in the global financial world and I am excited to be joining at this eventful time.” 

 

Media enquiries:

 

For further information, imagery or interviews please contact: Harika Chadha on +44 (0)20 7499 9591 or harika.chadha@tlgcapital.com

Release: 26th July, 2010

 

TLG Capital acquires a 36% Stake in India’s Largest Cartridge Refilling Network

Fund implements transmigration of business practices and technology from India to Africa

 

In a bid to replicate cost-effective enterprise solutions in frontier markets, TLG Capital has closed its first deal in India with Re-feel Cartridge Engineering Pvt Ltd, India’s largest and fastest growing printer cartridge refill and laptop repair services’ company. The investment is motivated by TLG’s strategies of Growth Capital and Transmigration of Technology from India into Africa.

 

Driving the demand for Re-feel’s service is the saving it offers India’s growing middle-class. Re-feel’s high-quality, environmentally-friendly cartridge refilling service costs a third of the original manufacturer’s price.

 

Playing to the same consumers, Re-feel’s wholly-owned “Club Laptop” subsidiary will offer laptop repairs at half the price of the original manufacturer. Club Laptop will also offer a more personalised and quicker turnaround of repair because, unlike competition that typically require shipping to their workshop, Club Laptop will have set up over 300 local repair stores nationwide by 2013. Having begun in Q1 2010, it already has 24 stores and will rapidly be expanding leveraging Re-feel’s existing outlets.

 

Zain Latif, Principal of TLG Capital said, “Re-feel’s distribution network within India is phenomenal. In just three years, Re-feel has expanded its network to over 130 cartridge refill stores in over 70 cities, becoming the largest refilling service provider in India. By 2013, we expect the company to double its refilling outlets. Given Re-feel’s access to India’s middle-class, we will be able to provide other related services in the future.

 

“In addition, we will look to replicate this business in sub-Saharan Africa given the similarities between Africa and India. Exporting stream-lined, efficient and cost-effective business models and technology from India to sub-Saharan Africa is a core theme for us.”

 

Of joining forces with TLG Capital, Alkesh Agarwal, CEO of Re-feel says, “We welcome the addition of this dynamic firm, who will work with us to consolidate and grow our business within India and abroad. The access to fresh capital will allow us to grow in accordance with the market and will provide an edge over our competitors in this space.

 

“We also look forward to welcoming into our management team TLG Capital’s Sidarth Menon, who will advise on core strategic and financial issues. This along with the firms network in sub-Saharan Africa, will prove invaluable to Re-feel’s expansion beyond Indian borders.”

 

TLG Capital was represented by international legal counsel Latham & Watkins LLP, led by Craig Stoehr from the firm’s Doha office. TLG Capital was also represented in matters of Indian law by leading Indian law firm, KSB Partners.

 

Craig Stoehr from Latham & Watkins LLP commented, “We are once again pleased to have acted as international legal counsel for TLG Capital in connection with another innovative private equity investment in an exciting and dynamic market such as India. It was a strong team effort and we are delighted to have worked closely with KSB Partners as co-counsel on this transaction.”

 

More information about the investments can be found here:
http://www.re-feel.in/
http://www.clublaptop.com/

Media enquiries:
For further information, imagery or interviews please contact: Harika Chadha on +44 (0)20 7499 9591 or harika.chadha@tlgcapital.com