AIIM Exits South African Toll Road Stake
Deal News | Nov 06, 2024 | African Infrastructure Investm
African Infrastructure Investment Managers (AIIM), a subsidiary of Old Mutual Alternative Investments, has successfully completed the sale of its 12.67% indirect stake in the Bakwena Platinum Corridor Concession (BPCC) in South Africa. The stake was sold to Gaia Fund Managers, a specialized asset manager focused on institutional investment in Africa's emerging infrastructure. Finalized on 5 November, this divestment marks a significant milestone for AIIM, showcasing its ability to align investment strategies with market conditions and deliver long-term value to investors. The BPCC, responsible for managing a 385 km stretch of highway, has been a key asset for AIIM's infrastructure portfolio since 2010, underscoring the importance of public-private partnerships in addressing infrastructure needs. The transaction highlights the increasing appeal of infrastructure as an asset class, driven by Africa's expanding need for sustainable transport networks. Gaia Fund Managers intends to continue the operation and maintenance of the N1 and N4 highways, ensuring a seamless transition and ongoing socio-economic benefits.
Sectors
- Infrastructure Investment
- Asset Management
- Transportation
Geography
- South Africa – The location of the Bakwena Platinum Corridor Concession and the geographical focus of the infrastructure asset sale.
- Africa – Both AIIM and Gaia Fund Managers have a broader focus on Africa's infrastructure market, leveraging opportunities across the continent.
Industry
- Infrastructure Investment – The article focuses on the investment in and sale of infrastructure assets, specifically toll roads in South Africa.
- Asset Management – AIIM and Gaia Fund Managers, both key players in asset management, are involved in the transaction, indicating the article’s relevance to this industry.
- Transportation – The Bakwena Platinum Corridor Concession is part of the transportation sector as it involves the management of toll roads.
Financials
- 12.67% – The indirect stake percentage in BPCC sold by AIIM.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| African Infrastructure Investment Managers (AIIM) | Selling Company | Company | A subsidiary of Old Mutual Alternative Investments, involved in infrastructure investment. |
| Gaia Fund Managers | Bidding Company | Company | Specialist asset manager facilitating institutional and pension fund investment in Africa. |
| Old Mutual Alternative Investments (OMAI) | Parent Company | Company | The parent company of AIIM. |
| Bakwena Platinum Corridor Concession (BPCC) | Target Company | Company | Holder of the toll road concession being sold. |
| Moritz Thompson | Investment Director at AIIM | Person | Provided strategy insights regarding the transaction. |
| South African National Roads Agency Limited (SANRAL) | Government | Government | Regulatory body overseeing the road concession. |
| Mich Nieuwoudt | Chairman of Gaia Fund Managers | Person | Provided strategic comments on the acquisition. |
| Sanlam Specialised Finance | Financier | Company | Provided funding support for the transaction. |
| Mark Moorhouse | Executive Head: Infrastructure and Project Finance | Person | Commented on the financing of the transaction through Sanlam. |