J&J acquires a shareholding in Gautrain (print version)

Gautrain stake underscores Absa Capital's commitment to infrastructure equity investments

In a further display of its commitment to infrastructure equity investments, Absa Capital’s Infrastructure Equity Investments (IEI) team today announced the acquisition of an 8% shareholding in the Gautrain and the funding of a further 8% shareholding, acquired by the J&J Group.

In addition to acquiring an 8% share directly, the IEI team also funded the J&J Group’s 8% acquisition, in order to increase the BEE shareholding in the Bombela Concession Company (Pty) Ltd (Bombela). Bombela holds the 20 year concession for the design, build, part–finance, operation and maintenance of the R25 billion Gautrain project.

Bouygues Travaux Publics and Bombardier Transportation have each sold 8% of their shares in Bombela and continue to hold 17% respectively.

This acquisition is significant in that it makes Absa Capital and the J&J Group the first entities to acquire shareholding in Bombela since its incorporation by the original shareholders.

Furthermore, through this acquisition Absa Capital publicly shows its support for the Gauteng Province’s efforts to contribute to economic growth and improve alternative commuter transportation..

“The acquisition of equity within Bombela is a reflection of our commitment to partner the Gautrain project as it rapidly moves from the planning stages to reality,” said Sollie Nortjé, Head of IEI at Absa Capital.

“The IEI team focuses on equity investments in infrastructure projects throughout Sub-Saharan Africa” said Nortjé. “However it is particularly heart warming to be committed to such a high profile project in our very own backyard.”

Absa Corporate and Business Bank is also the largest debt funder of the Gautrain project.

Today’s announcement follows in quick succession after the IEI division recently announced an acquisition of a 15% stake in Southern African Development Community’s (SADC) new USD30 million headquarters in Botswana.