Iffco takes over Senegal's chemical firm
One of the world's largest fertiliser producers Iffco inked the deal allowing it to invest $80 mn to re-capitalise Industries Chimiques du Senegal (ICS).
By Agencies |
DAKAR: Indian fertiliser giant Iffco has assumed a major stake in Senegal's key chemical firm after injecting $80 million into the cash-strapped company, Senegal's mines minister has announced.
One of the world's largest fertiliser producers Indian Farmers Fertiliser Cooperative (Iffco) inked the deal allowing it to invest $80 million to re-capitalise Industries Chimiques du Senegal (ICS).
"This agreement allows us to pass on the control (of ICS) to Iffco," Minister of Mines Madicke Niang told a news conference yesterday.
The Senegalese government which previously held a 46.38 per cent stake in ICS will see its interests reduced to a minority shareholder with just about 10 per cent.
Iffco's new stake in ICS was not immediately specified, but it would be the majority shareholder while the remainder of shares will possibly be split among the former partners of the company, especially India, Nigeria and Cameroon.
Ridden by years of debt, ICS had stopped producing over the past eight months, costing the country between 1.0 and 1.5 per cent in overall growth rate.
The new investment is expected to help bolster the west African country's growth which slumped to 2.1 per cent last year from 5.5 per cent in 2005.
With 2,500 permanent staff and some 12,000 casual workers, ICS is Senegal's top single private sector employer.
One of the world's largest fertiliser producers Indian Farmers Fertiliser Cooperative (Iffco) inked the deal allowing it to invest $80 million to re-capitalise Industries Chimiques du Senegal (ICS).
"This agreement allows us to pass on the control (of ICS) to Iffco," Minister of Mines Madicke Niang told a news conference yesterday.
The Senegalese government which previously held a 46.38 per cent stake in ICS will see its interests reduced to a minority shareholder with just about 10 per cent.
Iffco's new stake in ICS was not immediately specified, but it would be the majority shareholder while the remainder of shares will possibly be split among the former partners of the company, especially India, Nigeria and Cameroon.
Ridden by years of debt, ICS had stopped producing over the past eight months, costing the country between 1.0 and 1.5 per cent in overall growth rate.
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The new investment is expected to help bolster the west African country's growth which slumped to 2.1 per cent last year from 5.5 per cent in 2005.
With 2,500 permanent staff and some 12,000 casual workers, ICS is Senegal's top single private sector employer.
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