Nedbank Capital funds BEE consortium to acquire a shareholding in Spring Lights Gas

 

NEWSFLASH   24 April 2012   Nedbank Capital funds BEE consortium to acquire a shareholding in Spring Lights Gas   Nedbank Capital is pleased to announce it recently led a consortium of funders to enable a Black Economic Empowerment (BEE) consortium led by Kwande Capital (Proprietary) Limited (Kwande Capital), together with Zungu Investments Company Proprietary Limited (Zico), to acquire a 51% shareholding in Spring Lights Gas (Propriety) Limited (SLG).   Nedbank Capital’s Leveraged Finance team acted as mandated lead arranger providing R250 million of senior debt funding, whilst it’s Private Equity team provided R104 million as the anchor mezzanine equity funder.   Clive Howell, head of Private Equity at Nedbank Capital says: “We are proud to have funded Kwande Capital in its majority acquisition of SLG. This transaction further demonstrates our commitment to providing funding in the clean-tech space as well as ultimately developing and growing the KZN economy.”     SLG is a prominent supplier of piped gas to industrial and commercial customers in Kwazulu Natal. It utilises a growing pipeline network that covers major industrial hubs in Durban, Newcastle and Richards Bay, and is focussed on growing this market beyond the current reach of existing gas infrastructure. SLG’s customer base includes some of the most prominent ‘blue-chip’ industrial companies in the country. SLG is considered as one of the most successful BEE ventures in South Africa's energy sector.   Kwande Capital is a 100% BEE owned and managed company with a primary focus on energy and FMCG investments. It is part of a group formed in 2004 to provide consulting services to the energy sector and trading of crude oil and liquids fuels. Its principals are Deon Dhlomo and Shakes Matiwaza. Zico is an established investment company chaired by founding member Sandile Zungu with interest in mining, automotive and services industries   Tshego Sefolo, MD of Zico says: We are pleased to have partnered with Kwande Capital in concluding an acquisition of one of the leading piped gas suppliers in SA.   Ends --------------------------------------------------------------------------------------------------------------------- Note to Editors:   Nedbank Capital is a cluster of investment banking businesses operating within the Nedbank Group, one of the four largest banking groups in South Africa. Nedbank Capital consists of a number of divisions that together manage the structuring, lending, underwriting and trading businesses. It provides a full product spectrum offering that stretches from equity research, to the provision of long-term project financing, enabling the business to compete effectively in the southern African market. It is based at the Group’s head office in Sandton, Johannesburg, with large operational centres in Durban and Cape Town, as well as offices in London, Toronto, Namibia and Angola.   Issued by Nedbank Group Communications Contact:  Joanne Isaacs                   Nedbank Group Communications                  +27 11 2958045/ 0788004989                   JoanneI@Nedbank.co.za