The Singaporean group Olam has disbursed 15.3 million euros for the acquisition of 51% of the shares of the New Cotton Company of Togo (NSCT) through an agreement signed on November 20, 2020. The transaction should be finalized in December, we say.

In a statement issued to this effect, the group said that its equity stake in the company is on a cash-free, debt-free basis and closing net working capital of approximately €19.1 million. Likewise, he said, the acquisition will be financed through a combination of internal accruals and existing credit facilities.

Before the deal, the Togolese state controlled 60% of NSCT, compared to 40% for the National Federation of Cotton Producers' Groups in Togo (FNGPC-Togo). From now on, the State finds itself with 24% whereas the part of the producers drops to 25%.

"This desire to sell all or part of its shares in the share capital of the NSCT responds to the government's concern to find a renowned strategic partner, with the necessary expertise, likely to contribute, in the field of Agro- industry, to the achievement of the objectives of axis 2 of the National Development Plan (PND 2018-2022), in particular with regard to the cotton sector", declared the Minister of Economy and Finance, Sani Yaya, at the end of June before the parliament which had just given the green light to the project.

A project which, according to the Minister, will ensure increased yields by improving technical itineraries thanks to the exploitation of the results of the soil fertility map initiated by the government, the modernization of the industrial tool in order to improve the cotton collection and ginning performance, and the development of the “cotton made in Togo” brand in order to benefit from a price differential in relation to quality.