African En­ergy Part­ners gets green light for AltX list­ing

CityPress - - Business & Tenders - LESETJA MA­LOPE­lope@city­

Black em­pow­er­ment group African En­ergy Part­ners is sched­uled to list on the JSE’s AltX this year.

The group is go­ing to list as a spe­cial pur­pose ac­qui­si­tion com­pany, which will en­able it to gen­er­ate the R500 mil­lion in cap­i­tal it needs for sev­eral ac­qui­si­tions in the en­ergy sec­tor so that it can fo­cus on its liq­ue­fied nat­u­ral gas niche mar­ket.

A spe­cial-pur­pose ac­qui­si­tion com­pany is es­tab­lished to fa­cil­i­tate the pri­mary cap­i­tal rais­ing process that will en­able the ac­qui­si­tion of as­sets.

The com­pany, headed by en­ergy spe­cial­ist Ed­win Kikonyogo as its CEO and Nkosi Gu­gushe as its chief op­er­at­ing of­fi­cer, this week an­nounced that it would be list­ing on the AltX on June 1.

The JSE is­sued the com­pany with of­fi­cial ap­proval this week.

“Our strat­egy is to ac­quire mostly con­trol­ling stakes in tar­get op­er­a­tions as op­posed to mi­nor­ity in­vest­ment stakes,” Kikonyogo said.

He added that African En­ergy Part­ners al­ready had a num­ber of ac­qui­si­tion tar­gets that were gen­er­at­ing cash or were less than 12 months from do­ing so.

“Our tar­get op­er­a­tions of­fer a mix of medium- and long-term off-take agree­ments, as well as a con­tracted cost base, which makes for good long-term earn­ings vis­i­bil­ity. As our man­date is Pan-African, as op­posed to South African, we will also en­joy a mix of rand and hard currency earn­ings.”

Kikonyogo said the com­pany opted to de­but on the stock ex­change now be­cause the con­ti­nent was ready for a black-man­aged group that would make cheaper, cleaner and more re­li­able power.

Ac­cord­ing to Gu­gushe, the com­pany wanted to make sev­eral vi­able as­set ac­qui­si­tions within the next 12 months.

“We want to take the R500 mil­lion and turn it into sev­eral bil­lion, even R10 bil­lion, and we don’t just want the big in­vestors that are go­ing to buy R200 mil­lion – we also want the or­di­nary man on the street be­cause the shares will only be R10 each,” Gu­gushe said.

As a spe­cial-pur­pose ac­qui­si­tion com­pany, African En­ergy Part­ners will have two years to make a vi­able ac­qui­si­tion, and its found­ing di­rec­tors will con­trib­ute at least 5% of the cap­i­tal them­selves.

On con­clu­sion of the ac­qui­si­tions, sub­ject to JSE re­quire­ments, the com­pany will con­sider a move to the JSE’s main board.

Kikonyogo said African En­ergy Part­ners is a new com­pany, de­spite be­ing man­aged by Des­tiny Corporation, which has been in the en­ergy sec­tor for 12 years.

Des­tiny Corporation is also owned by Kikonyogo and Gu­gushe.

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