SA’s AECI acquires Much Asphalt Limited for ZAR2.27 billion

Akij Group

AECI said it has entered into an agreement with Capitalworks Private Equity, MIC Investment Holdings Proprietary Limited and the Much Asphalt management team to acquire 100% of the issued share capital in Much Asphalt (“the Transaction”), for a total consideration of R2,272 billion which is payable in cash (the “Purchase Consideration”) subject to the management approval.

The closing of the Transaction is subject to the fulfilment or waiver of the approval by the Competition Authorities in South Africa and Namibia in terms of the respective Competition Acts; consent to the change of control in Much Asphalt from certain parties; and finalisation of a management transaction, whereby the Much Asphalt management team will either retain a portion of their shareholding in Much Asphalt or re-invest a portion of the proceeds received from the Transaction, representing approximately 2% of Much Asphalt’s issued share capital, through a purchase or subscription of shares in Much Asphalt.

The effective date of the Transaction will be the last day of the month in which the last of the conditions precedent are fulfilled or waived.

Much Asphalt is South Africa’s leading manufacturer and supplier of hot and cold mix asphalt products, and a manufacturer, supplier and applicator of bituminous road binders, emulsions, primes, pre-coats and modified binders.

According to AECI, its aim is to boost its focus on domestic growth and ongoing expansion outside South Africa in its current strategic pillars (Mining Solutions, Water & Process, Plant & Animal Health, Food & Beverage, Chemicals), AECI’s growth strategy includes expansion into new areas of business. The Transaction, therefore, is in line with the Company’s strategy to diversify the markets in which it operates.

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