Duet seeks more investment after Dashen deal

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The alternative asset management company, Duet Group targets to invest hundreds of millions of dollars on the consumer sector in Ethiopia in the coming years after it successfully managed to inject USD 90 million to grow the capital of one of the country’s biggest brewery, Dashen Brewery last week.
The London based consortium that secured significant shares in the local brewery (Dashen) has plans to invest at least USD 100 million every year for a partnership of investments in the consumer product sectors that range from personal care to beverages.
The equity firm that will open its first African office here in Addis Ababa this month has also planned to get involved in the mining and agriculture sectors by 2013.
Currently Duet is negotiating to inject capital on four viable projects and could potentially commit another USD 100 million by the end of 2012. “Our focus will be the consumer sector and particularly the manufacturing sector for this year,” Demissie A. Demissie, Duet Ethiopia Managing Director told Capital.
A week ago the equity firm and TIRET Group, owner of Dashen Brewery sealed a deal that will see the brewers’ capital grow by USD 90 million, in exchange for around 40 percent share of the brewery. This investment is the largest public equity investment in Ethiopia. Bereket Simon, Board Chairman of the TIRET Group was quoted as saying, “In the last eight years, Ethiopia has successfully enacted five year plans designed to foster a business environment in which businesses are able to successfully operate; Dashen’s ability to attract, Duet Group demonstrates this. This transaction marks only the beginning of Ethiopia’s bright future in terms of attracting more FDIs.”
Tadesse Kassa, CEO of the TIRET Group also said, “We are pleased to welcome our new partners to Ethiopia. We expect them to enhance our capabilities by bringing international sector expertise and management skills to the business and to the country. With this investment, we plan to focus on our technical expertise in a rapidly growing market.”
The brewery sector in Ethiopia experienced significant activity in 2011, with international operators paying more than USD 400 million for three state-owned breweries. Demissie said that Duet believes this investment reflects the potential of the Ethiopian brewery sector, which has grown by over 25 percent annually over the last five years, and is expected to continue to grow in line with Ethiopia’s double digit GDP growth. Ethiopia’s GDP growth is expected to be the fastest in Africa and third fastest in the world.
Duet Group is a UK-based asset management firm with over USD 2.8 billion of assets under management.
Dashen Brewery has a significant market share in Ethiopia by its two popular brands – Dashen and Royal.