African Infrastructure Investment Managers (AIIM), one of Africa's largest infrastructure-focused private equity fund managers, and the Mokobela-Shataki consortium completed a ZAR1.6 billion ($110 million) takeover of The Logistics Group (TLG).
"The integrated logistics company operates in Southern Africa with services across port, rail, warehousing and digital transport logistics," according to an official statement from AIIM.
The transaction was financed by a mix of equity and debt financing. AIIM, through its flagship South African IDEAS Fund and AIIF4 Fund acquired a 74 percent stake in TLG. The remaining 26 percent stake was acquired by the Mokobela-Shataki Consortium, sponsored by Moss Ngoasheng, founder and CEO of Safika Holdings (Pty) Ltd, and Monhla Hlahla, former CEO of the Airports Company South Africa and current Chairperson of Royal Bafokeng Holdings.
"TLG presents a rare opportunity to acquire a multi-corridor player while addressing regional capacity constraints in partnership with Transnet and other major operators in the region," says Ed Stumpf, Investment Director, AIIM. "We view TLG as the cornerstone for a regional ports and logistics platform which will pursue additional investments along a number of transport corridors.
"Looking more broadly, this will help reduce transport costs, which can have a considerable impact on the price of goods and catalyse trade regionally and beyond. Positioning the group to support multi-mode rail/road and backhaul cargo efficiency is a core part of our strategy to reduce carbon emissions as part of the journey to net zero."
Olusola Lawson, Managing Director & Co-Head, AIIM added: "This represents our next generation pan-African fund AIIF4's first investment. AIIF4 is a thematic investor with a high-quality diversified pipeline across the Digital infrastructure, Energy Transition and Mobility and Logistics sectors. We look forward to expanding the fund's portfolio."
While investment to enhance the existing TLG terminals in Cape Town, Port Elizabeth and Durban will be pursued in partnership with Transnet National Ports Authority, operational ramp-up of TLG's businesses in Mozambique, Zambia and Namibia will be prioritised, the statement said.
"We are excited to conclude this transaction and create a long-lasting partnership with AIIM and TLG," says Ngoasheng. "The acquisition allows Mokobela-Shataki to gain a strong foothold in the Southern African logistics industry, which we envision to be a key catalyst for the economic recovery and future growth of the region post Covid-19. The combination of TLG's logistics expertise and the infrastructure investments and ports expertise of the AIIM Mokobela-Shataki Consortium will create greater supply chain efficiencies, deliver more comprehensive logistics solutions into a wider market."