In a further display of its commitment to infrastructure equity investments, Absa Capital’s Infrastructure Equity Investments (IEI) team today announced the acquisition of an 8% shareholding in the Gautrain and the funding of a further 8% shareholding, acquired by the J&J Group.
In addition to acquiring an 8% share directly, the IEI team also funded the J&J Group’s 8% acquisition, in order to increase the BEE shareholding in the Bombela Concession Company (Pty) Ltd (Bombela). Bombela holds the 20 year concession for the design, build, part–finance, operation and maintenance of the R25 billion Gautrain project.
Bouygues Travaux Publics and Bombardier Transportation have each sold 8% of their shares in Bombela and continue to hold 17% respectively.
This acquisition is significant in that it makes Absa Capital and the J&J Group the first entities to acquire shareholding in Bombela since its incorporation by the original shareholders.
Furthermore, through this acquisition Absa Capital publicly shows its support for the Gauteng Province’s efforts to contribute to economic growth and improve alternative commuter transportation..
“The acquisition of equity within Bombela is a reflection of our commitment to partner the Gautrain project as it rapidly moves from the planning stages to reality,” said Sollie Nortjé, Head of IEI at Absa Capital.
“The IEI team focuses on equity investments in infrastructure projects throughout Sub-Saharan Africa” said Nortjé. “However it is particularly heart warming to be committed to such a high profile project in our very own backyard.”
Absa Corporate and Business Bank is also the largest debt funder of the Gautrain project.
Today’s announcement follows in quick succession after the IEI division recently announced an acquisition of a 15% stake in Southern African Development Community’s (SADC) new USD30 million headquarters in Botswana.
Note to the editor:
About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.
About Absa Capital Infrastructure Equity Investment
The Infrastructure Equity Investments (IEI) team is establishing itself as the leader in providing equity investments for infrastructure projects across south and Sub-Saharan Africa. IEI’s investment mandate includes:
• equity stakes in infrastructure projects;
• equity stakes in companies that supply or support these projects;
• funding of the empowerment component of sponsor consortiums; and
• funding of mezzanine equity.
The team’s robust investment strategy includes a diversified portfolio of projects in the energy, transportation, telecommunications, water and sanitation and property sectors.
The IEI team’s investment criteria include:
• acquisition of minority shareholding positions;
• investments in Greenfield and existing projects;
• established contractors and operators; and
• independent legal and technical and financial due diligence.
About The J&J Group
The J&J Group is a broad-based BEE investment and management company with holdings in the financial services, healthcare, information technology and industrial sectors.