TUNISIA – Sango Capital, has acquired a controlling stake in Sotipapier, the leading paper packaging manufacturer in Tunisia and plans to proceed with a tender offer in accordance with regulations in force.
Sango Capital is an investment management firm focused on delivering superior risk-adjusted returns from fund and direct investments in Africa.
The firm acquired the stake in the paper packaging manufacturer following the exit of SPE Capital Partners from the company.
Founded in 1981, Sotipapier manufactures and sells Kraft paper, test liner and fluting paper, mainly serving the cardboard manufacturing and cement sectors.
SPE Capital’s exit comes after having a transformative impact on the company while creating value for its investors, putting in place a high-caliber management to drive growth and enhance operations, improving governance and optimizing capital structure through financial engineering.
Since its acquisition, Sotipapier has been listed on the Tunis Stock Exchange and has seen its revenues and profits increase four-fold.
The company has also increased its impact in the communities at large by implementing consequential environmental enhancement projects, investing heavily in the collection and recycling of locally sourced wastepaper and launching several CSR initiatives.
Nabil Triki, Managing Partner and CEO at SPE Capital said: “Since its acquisition, Sotipapier has undergone a profound transformation, allowing it to upgrade production capabilities, strengthen its management team and improve governance and social climate.
“The team is very proud to have supported the company to achieve its growth plans. Looking forward, we are confident Sotipapier will continue to thrive and has the potential to develop into an integrated, pan-regional leader in the paper packaging sector.”
The agreement remains subject to the obtention of the required authorizations from the competent authorities.
The paper packaging industry in North Africa is increasingly gaining traction from both local and international investors.
In May, Smurfit Kappa, one of the world’s largest manufacturers of innovative paper packaging solutions, headquartered in Ireland, set base in Morocco, investing £35 million (US$37 million) in a new corrugated packaging plant.
Located in Rabat and covering an area of 25,000 m2, the new facility will enable Smurfit Kappa to supply innovative and sustainable packaging solutions quickly and efficiently to its local customer base.
The plant is expected to be operational in early 2023 and create packaging for sectors including industrial, agriculture, FMCG, among others and serve both local customers and multinationals.
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