Consolidated Infrastructure Group Ltd. bought almost a third of Angola Environmental Servicos Limitada, an oil and gas waste-management company, to gain exposure to the country’s expanding oil industry.
Consolidated paid $15.3 million for 30.5 percent of AES while two other investors bought smaller stakes, the Johannesburg-based company said in a statement. AES generated sales of $42.6 million in the year ended 31 December, it said.
“The number of oil rigs operating offshore in Angola will increase significantly over the next few years,” the company said in the statement published on the Johannesburg stock exchange news service. “Changes to environmental legislation enacted in July 2012 will significantly enhance AES’s business.”
Angola pumps about 1.8 million barrels of oil a day, making it Africa’s largest producer after Nigeria. Exploration in so-called pre-salt offshore blocks could double Angola’s output in 10 to 15 years, Tako Koning, a geologist and manager of Angola business development at Gaffney, Cline & Associates, said last month.
Shares in Consolidated advanced 2.5 percent to 14.55 rand, its highest value in almost five years. The company has gained more than 45 percent this year, valuing it at 1.73 billion rand ($195 million).
Consolidated, which builds electricity stations for utilities and miners, said it would fund 30 percent of the purchase with cash and the remaining 70 percent with shares. The shares could number about 7.5 million at a 10 percent discount to the Nov. 27 price, according to pro-forma financial information in the statement.
Fundo De Investimento Privado Angola S.C.A., a private equity fund based in Luxembourg, bought 16 percent of AES for $8 million, Consolidated said. Morten Eriksen, a portfolio manager at Laerernes Pension Forsikrin in Denmark, purchased 1.5 percent for $750,000. The total price for 48 percent of the company was $24 million.