A group of private investors who have owned and developed the Lanseria International Airport (“LIA”) over the past 21 years have sold 100% of their shares in the Airport to a Consortium of Investors.
The transaction involves the following stakeholders under a new company to be formed:
- a BEE consortium including the broad based women empowerment company Nozala;
- the Government Employee Pension Fund through the Public Investment Corporation; and
- leading Pan African infrastructure development fund manager Harith, based in Sandton.
Lanseria International Airport offers both general aviation and scheduled passenger services.
The transaction is subject to certain conditions including regulatory approval.
Harith CEO, Mr Tshepo Mahloele has hailed the transaction and congratulated the Consortium for the acquisition of such a successful and strategic infrastructure asset in the highly specialised and competitive aviation sector.
Mr Mahloele says Harith will play an active role in ensuring that LIA continues to sustain and deliver value to its customers and partners. “This is a landmark transaction for Private Sector Infrastructure deals in South Africa. We are very pleased to have been involved with the financing of this very important growth project and envisage that it will continue to foster regional interaction and convenience for the SADC region, rest of Africa as well as the local business and tourism sectors.”
“We are excited about the future prospects of this strategic infrastructure asset which has demonstrated solid performance over the years under an astute team of experienced and passionate managers. It is such values of hard work, diligence, focus and enduring partnerships that attracted Harith to this very important asset.”
Mahloele said Harith was impressed by the business model employed by the owners. “We envisage LIA to continue developing and entrenching its critical role as a low cost alternative to OR Tambo Airport.
This asset will significantly add to our transport assets across the continent.”
Rampa Rammopo, COO and Acting CEO of Nozala said that “the investment in LIA provides the BEE consortium with the opportunity to invest in the only privately run airport in South Africa that offers significant upside in the future. As a broad‐based women’s investment company, Nozala is looking to be a significant player in the aviation and infrastructure sector and we see LIA as a key entry into this sector.”
“We are also delighted to partner with Harith and PIC in this transaction and we look forward to working closely with them to drive a number of transformation initiatives at LIA and simultaneously create sustainable economic value to our respective shareholders”.
Gavin Sayce, LIA CEO said: “We are pleased that the new prospective shareholders have endorsed our approach to business as well as our business model. As a consequence the complete management team will remain unchanged as well as the business philosophy which has stood us in good stead. In addition our capital expenditure programme for the next 3 years has been accepted, committed to and funded by the new owners. We look forward to working with the new team to continue the growth of Lanseria International as South Africa’s only low cost airport.”
This investment, says John Oliphant, GEPF’s Principal Officer and head of investments and actuarial, represents an important milestone in the implementation of the GEPF’s development investment (DI) policy which seeks to invest in economically viable projects while furthering the SA’s development agenda. It also ensures that workers in the form of 1.5 million public servants (GEPF members and pensioners) increase their ownership of strategic assets in the SA economy.
“The PIC is excited about this strategic acquisition for and on behalf of the GEPF, as well as facilitating the entry into the aviation infrastructure sector by a BBBEE consortium led by Nozala, says Dr Dan Matjila, Chief Investment Officer. “The long term infrastructural development opportunities emanating from the acquisition and expansion of the airport will create jobs and facilitate the expansion of critical infrastructure in Gauteng and thus contribute to the economic transformation endeavours of the country.”