MTI sells 12 percent of the shares in Zanrec AB for SEK 2 million
MTI Investment announces today that it has today divested 12 percent of the shares to Holdingsselskabet Claus Jørgensen II ApS for USD 190,000, which with the acquisition will have an ownership of 25 percent in Zanrec. In connection with this change, Martin Rex Empacher also joins the MTI Investments Advisory Board. By reducing MTI's ownership to 49 percent, large savings are achieved for MTI, as future reporting is simplified by eliminating the requirement for consolidation for Zanrec.
Through this transaction, investor Claus Jørgensen (founder of Netcompany Group A/S in Denmark), via his Holdingsselskabet Claus Jørgensen II ApS, increases his ownership to 24.93% percent from 12.93 percent. At the same time, MTI reduces its holding from 61 percent to 49 percent. The valuation is calculated based on the company's turnover in the last 12 months and is estimated at approximately USD 1.6 million.
Founded in 2009, Zanrec is a privately owned waste management company with an experienced management team, and streamlined operations and is poised for future expansion. Zanrec complements Zanzibar's waste collection by partly collecting mostly organic waste from Zanzibar's hotels, but it also has a strong focus on plastic collection and recycling. An appreciated element of Zanrec's operations is the collaboration with German Ozeankind around the concept of Swop shops, where they currently have 6 such collection points, but where they continue to increase the number of collection stations for increased plastic collection.
Zanrec has a market share of approximately 20% of hotels in Zanzibar, and collects approximately 7,000 tonnes of waste per year, a 100 percent increase compared to 2021 - waste that would otherwise be dumped at sea or in the forest - Zanrec makes a positive impact on the environment and also creates many jobs. With Zanrec as a waste management supplier, hotels and tourists are guaranteed responsible waste management. Through an increased focus on plastic collection, Zanrec ensures that large amounts of plastic are instead recycled, and the goal is to reach 50 tons of plastic per month by the end of the year.
Pontus Engström - CEO of MTI Investment SE says: "Despite a challenging sector, we have grown both turnover and volumes significantly in 2022. If we had not also encountered corruption in the north during the second quarter, we would probably have had twice as much turnover and collected even more. To overcome these sorts of problems, an increased commercial and innovative focus is needed, and Claus Jørgensen through Martin Empacher has been a strong support in that work, which is why we are also today bringing Martin into our MTI advisory team."
Martin Empacher - CEO at Yardhouse says: "With this incremental Investment into Zanrec AB, we combine two of our main focus areas at YardHouse Capital Group, Frontier Markets, and a Sustainable Investment Solution. Together with a strong and trustable management group and a group of like-minded investors can we move the needle when it comes to Africa and being a responsible investor in finding solutions and structures that will not only benefit the local people, but the entire World - in this case collecting and manage waste responsibly and profitably, resulting in a sustainable path for all people at Zanzibar and within Tanzania."
The Company's Certified Adviser is Mangold Fondkommission AB
For additional information
Pontus Engström, CEO, MTI Investment SE
+46 70 716 55 38
Martin Rex Empacher, CEO; Yardhouse Capital Group
+45 316 407 30
About Claus Jørgensen
Claus Jørgensen is a co-founder of Netcompany Group A/S (NETC), a Danish publicly traded IT consultancy headquartered in Copenhagen, Denmark with a market cap of approximately DKK 35 billion. Claus Jørgensen is in this transaction supported by Yardhouse Capital Group.
About Yardhouse Capital Group
YardHouse Capital Group is based upon two business areas, a combination of a Global focused Multi-Family Office based in Denmark (YardHouse Family Office) and a highly specialized global agency (YardHouse Global Partners) focused upon Emerging Markets, Frontier Markets, and Global Sustainable Investments Solution with partners in Asia, Africa, Latin America, Europe, and the US. YardHouse Global Partners (part of YardHouse Capital Group) has become a Gateway for investors when it comes to professional solutions and insight into Emerging Markets, Frontier Markets, and Sustainable Investment Solutions.
About MTI Investment
MTI Investment SE is a Nordic investment and venture-building company, founded in 2014 by a team with extensive experience in emerging markets to invest in East African small and medium-sized enterprises ("SMEs") with high value-adding potential. The Company is active in the expansive East African market, and by being a long-term and active owner, MTI Investment helps its portfolio companies grow faster and become more profitable. The Company invests primarily in innovative and scalable companies that have the potential for a significant positive impact on society.
This information is information that MTI Investment SE is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information in this press release has been published through the agency of the contact persons set out above, at 10:00 CET on 2022-11-18.
Om MTI Investment
MTI Investment SE is a Nordic investment and venture building company, founded in 2014 by a team with extensive experience from emerging markets with the aim of investing in East African small and medium-sized enterprises ("SME") with high value-adding potential. The Company is active in the expansive East African market, and by being a long-term and active owner, MTI Investment helps its portfolio companies grow faster and become more profitable. The Company invests primarily in innovative and scalable companies that have the potential for a significant positive impact on society.
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