DCDM | Credentials

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Feasibility study carried out by DCDM for a port in Madagascar

A business plan was undertaken to evaluate the viability of the project and assess the competitive positioning of the malagasy port. The report also weighed the operational assessment of the port's operations in submitting various proposals for possible financing of its container handling equipment. The feasibility study was then submitted to international banking institutions.

Privatisation of Mauritius Telecom

In November 2000, the Government of Mauritius completed the sale of 40% stake in its national telecoms operator, Mauritius Telecom, via a two stage competitive tender process. The stake was sold to a strategic investor, France Telecom, for USD 261 million. CIBC was the financial adviser to the Government of Mauritius and DCDM provided the local support on all aspects of the privatisation, including accounting and tax. Senior members of our team assisted in the preparation and execution of the transaction as well as relations with the Government and the company.

The successful sale of 40% of Mauritius Telecom was the first privatisation undertaken in Mauritius and was a historic transaction, which realised proceeds far greater than anyone had predicted. Significant work was required to prepare the company for sale, including developing an appropriate regulatory framework. Strong working relationships were maintained with the Government and the company throughout the process.

Responsibilities included:

* Marketing the company, including canvassing potential interested investors and reviewing various financing alternatives
* Advising on a detailed and comprehensive strategy for the privatisation of MT, taking into account the broad intentions and policies of the Government of Mauritius
* Formulating a plan for the implementation of the strategy within a set timeframe
* Reviewing the current structure of MT and advising on how to optimise the value of MT prior to its privatisation
* Carrying out significant due diligence and preparatory work in respect of MT
* Undertaking a complete valuation of the shares to be sold
* Preparing all amendments to be brought to the legal, regulatory and administrative regime
* Providing all assistance needed for divestment and finalisation of the sale of shares to the strategic investor including drafting of transaction documents and evaluation of final bids

Due diligence of Air Chad

DCDM carried out a due diligence at Air Chad. This exercise was key to determine whether our client, a national airline company, would proceed with this cross border acquisition of this airline. The main objectives of this venture were to perform a comprehensive assessment of the assets to be acquired, define the legal framework and above all devise a corporate plan for a long term successful positioning of the company. The bid documents were also prepared for Air Chad in collaboration with the Central Privatisation Committee.

Transaction Advisory Services

We carried out this due diligence exercise for the account of a consortium of investors based in the United Kingdom in the context of the privatisation of a state owned petroleum company.

Our multi disciplinary team comprising of engineers financiers, accountants, and legal advisers revealed a number of issues in respect of:
-the legal and regulatory aspects governing the sector;
-legal title to certain strategic land and properties of the company;
-additional provisions which had to be made in respect of stocks and debtors;
-Performance of the refinery below what was communicated in the Information Memorandum.

The results of our work were used in subsequent negotiations with the government and the bid price was finally reduced substantially (can we say by 50%?).

Due diligence for a takeover deal at two hotels in Tanzania

Arthur Andersen Genova office and DCDM were appointed by an italian company to conduct a full diligence work of two hotels prior to their acquisition in Tanzania. Our experts performed a full due diligence review for those two hotels including a financial audit of two companies, the reconstitution of the end of year balance sheet and the reconstitution of the local tax and legal framework and their impact on two companies. Following this complete review, we advised the italian company on local tax and legal implications for the takeover deal.

Due diligence at a mining company in Tanzania

DCDM conducted a full due diligence at a mining joint venture in Tanzania. The project is an equal joint venture between an australian listed company and a Toronto listed company. The joint venture envisaged production of over 1 million ounce of gold over the life of the project (6 years). A full fledged due diligence exercise was conducted including a financial audit of the company, the review of accounting policies and financial performance review of the mining joint venture as well as a comprehensive review of business risks.

Due diligence review for a sugar plantation company in Tanzania

DCDM was appointed to perform a due diligence review at this sugar plantation company in Tanzania. A financial audit of the company, review of accounting policies and financial performance review were conducted. Once the due diligence work was completed successfully, DCDM also negotiated on behalf of the client a management contract for the same company.

Due diligence review at a malagasy petroleum company

DCDM was appointed to lead a consortium led by an international leading petroleum company and the largest indian ocean based provider of technical, managerial, and industrial assistance in the petroleum sector. Our experts were responsible for the following :

A full financial, legal and technical due diligence review
A comprehensive review of business risks facing the company
Preparation of a business and strategic plan
Valuation of the company
Preparation of an offer document
Advisory assistance on structuring the acquisition and shareholding structure
Preparation and advice on privatisation and negotiating strategy
Provision of advice and support in the negotiation process.

There was a full fledged diligence review performed at this malagasy petroleum company and the company was then privatised and sold to an international leading petroleum company. DCDM was involved on the legal front with the hiring of lawyers and corporate finance experts to close the transaction.

Due diligence in view of future privatisation of a national malagasy telecommunications company

DCDM was appointed by the Secretariat Technique du Comite de Privatisation of Madagascar to carry out a full diligence review of the telecommunications company. They carried out a financial audit of the company, a review of the accounting policies, and a financial performance review, as well as a review of the forecast financial information prepared by the management of the company.
We also undertook a comprehensive review of the business risks facing the company which would potentially affect the success of the privatisation process.


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