Actis news
Actis awarded Africa venture capital deal of the year 2008
5 November 2008
Actis, a leading private equity investor in emerging markets, together with Old Mutual Investment Group, has won the Africa Investor magazine's Venture Capital Deal of the Year 2008 for the US$700 million (ZAR5.16 billion) acquisition of Alstom South Africa, a major electrical engineering, manufacturing, distribution and contracting business.
Africa Investor magazine's investment awards recognise and reward the achievements of the private sector across wide-ranging sectors and disciplines throughout Africa.
The award is recognition of Actis's strong execution capabilities, deep understanding of the industry and the key drivers of economic growth in South Africa. Actis and Old Mutual Investment Group formed a consortium, which included Black Economic Empowerment partners, Tiso, Kagiso and Sibilant, and also increased the equity ownership within the management team in a move to encourage loyalty and retention.
Commenting on this award Actis Partner John van Wyk said:
"This award is a demonstration of Actis's core philosophy of partnership with successful companies, especially in sectors where domestic infrastructure demands are stimulating growth. We believe that our in-depth local knowledge, extensive expertise in a range of sectors, innovative deal structuring, and ability to invest alongside a strong management team to create value allowed us to win."
Alstom has been operating in South Africa for more than 100 years and is seen as one of the leading suppliers in the electrical engineering sector. It is well placed to play a key role in assisting the South Africa power sector in addressing the major backlogs presently existing in the electricity transmission and distribution networks. The deal provides the company with a structure that will help to consolidate the company's market position and focus on long term growth.
The deal is currently the largest private equity deal completed in Africa so far this year.