AEEI aims to cast its asset net wider

African Equity Empowerment Investments (AEEI) is gearing itself for further growth through acquisitions, it said on Tuesday.

The group has investments in fishing, technology, health and beauty, and events and tourism. “Management is focused on its five-year strategic plan and has firmed up its acquisition pipeline for both its fishing and brands division and ICT associate,” the company said.

AEEI’s fishing division, Premier Fishing and Brands, earlier this year bought a controlling stake in Talhado Fishing Enterprises, the largest squid company in SA, as part of a strategy to increase the firm’s product range.

Premier Fishing operates a business that specialises in the harvesting, processing and marketing of fish and fish-related products. It has medium- to long-term fishing rights in squid, lobster, small pelagics, hake deep-sea trawl and tuna.

On Tuesday AEEI reported a 22% rise in revenue for the year to August to R701m, “mainly due to significant revenue growth achieved from the fishing and brands division”.

The fishing business increased revenue 20% to R491m. Talhado was included for only three months in the group results.

AEEI said its information and communication technology (ICT) associate, Ayo Technology Solutions, which is also listed on the JSE, was well-placed to capture growing ICT spend in SA.

The company cited improving market conditions and broad-based BEE regulations for the optimism.

Ayo “is currently servicing customers in southern and northern Africa, Europe and Mauritius. Ayo’s strategic alliance with BT provides it with access to global technology trends as well as access to the global market,” the firm said.

Other than BT Communication Services SA, AEEI has minority interests in Premier Foods Group, Sygnia and Saab Grintek Defence. “These investments have shown improvement in their investment value since the date of the acquisitions. Consistent growth in earnings and regular dividends are received from all the strategy investments,” the company said.

AEEI declared a dividend of 12c per share.

The company’s shares were up 12.25% to R4.49 on Tuesday.