African Infrastructure Investment Managers (AIIM), one of Africa’s largest infrastructure-focused private equity fund managers, and the Mokobela-Shataki consortium have completed a US$110mn takeover of The Logistics Group (TLG)
The integrated logistics company operates in southern Africa with services across port, rail, warehousing and digital transport logistics. The transaction was financed by a mix of equity and debt financing. AIIM, through its flagship South African IDEAS Fund and AIIF4 Fund, acquired a 74% stake in TLG. The remaining 26% stake was acquired by strategic investment partners, the Mokobela-Shataki Consortium, sponsored by Moss Ngoasheng, founder and CEO of Safika Holdings (Pty) Ltd, and Monhla Hlahla, former CEO of the Airports Company South Africa and current chairperson of Royal Bafokeng Holdings.
Adding TLG to the AIIM portfolio bolsters its transport strategy in southern Africa, helping to address capacity deficits from ports and inland transport. South Africa’s ports are some of the continent’s least efficient. Doubling efficiency could equate to halving the distance between the country’s main trading partners. Investment in transport corridors running from strategic southern African ports will benefit from strong growth prospects for various bulk and break-bulk cargoes, such as battery metals, cementing the continent’s role as a key player in the global energy transition.
Ed Stumpf, investment director at AIIM, said, “TLG presents a rare opportunity to acquire a multi-corridor player while addressing regional capacity constraints in partnership with Transnet and other major operators in the region. We view TLG as the cornerstone for a regional ports and logistics platform which will pursue additional investments along a number of transport corridors."
Port Elizabeth and Durban will be pursued in partnership with Transnet National Ports Authority for investment to enhance the existing TLG terminals in Cape Town. Meanwhile, operational ramp-up of TLG’s businesses in Mozambique, Zambia and Namibia will be prioritised. AIIM will also seek to develop bolt-on investment prospects in other key markets where it has portfolio investments and on-the-ground experience to ensure TLG provides a comprehensive offering along diverse corridors to hinterland centres of production or demand, in the southern and eastern African region.