CC and Linklaters lead as Carlyle and StanChart make Tanzanian investment

Clifford Chance has advised private equity outfit the Carlyle Group on its $210m (£132m) investment in Tanzania-based agricultural company Export Trading Group (ETG), with Linklaters and South African firm Webber Wentzel also acting for investors.


Kem Ihenacho
Kem Ihenacho

Clifford Chance won the role for Carlyle with a team led by London private equity partner and Africa practice co-head Kem Ihenacho, alongside antitrust partner Alastair Mordaunt, tax partner Nick Mace and Singapore counsel Valerie Kong.

It marks the first investment by Carlyle’s sub-Saharan Africa fund.

Other investors in ETG include Standard Chartered’s Africa private equity division and Pembani Remgro Infrastructure Fund.

Linklaters, which is also regularly retained by Carlyle, acted for Standard Chartered and ETG. Corporate and capital markets partner Stuart Bedford led the team from Singapore.

South African firm Webber Wentzel, which is currently in talks with Linklaters over an exclusive alliance (9 August 2012), acted for Pembani Remgro on the deal, with a team led by corporate partner Marita van der Walt in Johannesburg.

Kenya-based corporate finance specialist Krista Bates of Anjarwalla & Khanna Advocates, a member of the Africa Legal Network (ALN), also advised the consortium, which consists of Standard Chartered, Carlyle and Pembani Remgro, on due diligence issues.

Webber Wentzel is the South African member of the ALN.

Ihenacho commented: “This deal is another sign of African businesses becoming more significant players in the global agricultural markets.”

Carlyle said this was the first investment by its sub-Saharan Africa fund and by Pembani Remgro. The buyout specialist first formed a team in the region in March this year following office openings in Nigeria and South Africa in 2011.

Standard Chartered first invested $74m in ETG earlier this year, with the investment through Carlyle seeing it significantly increase its stake in the agricultural company.

Background to this deal:

Clifford Chance has advised Carlyle since 2002. The group has become one of the magic circle firm’s most coveted private equity relationships in recent years (24 September 2012).

Although Linklaters was not retained by the buyout specialist on this particular deal, the firm has had some success in loosening Clifford Chance’s grip on Carlyle since corporate partner Ian Bagshaw joined the magic circle rival in 2007 (5 February 2007).

For more on Carlyle’s relationships with external law firms, see City analysis