Africa’s biggest pension fund, the Public Investment Corporation of South Africa (PIC), with assets worth over N$2 trillion, made its first investment in Namibia’s capital markets after its subscribed to 5 300 000 shares in Namibia Stock Exchange (NSX) listed Alpha Namibia Industries Renewable Power Limited (ANIREP) in a transaction valued at N$53 million.
The transaction which was subject to shareholder approval was unanimously approved by ANIREP shareholders at a general shareholders meeting held on Friday the 4th of October, where 97 votes were cast in favor of the transaction.
Shareholders had been asked to approve the allocation of the 5 300 000 shares to PIC at a price of N$10 per ANIREP share.
The difference in systems between the Johannesburg Stock Exchange, which trades electronically and the NSX, which trades manually, was identified as having caused the delay in closing the transaction on time.
The investment by PIC provides a boost for the company’s fund-raising efforts and now brings the total tally of funds raised to over N$163 million through its private placement, from local and international investors.
“We believe this is quite an endorsement of our business case to consolidate the fragmented renewable energy space in Namibia. So, as a Namibian listed company, we are privileged to bring the PIC on board, but it’s a test to the fact that it’s the first time that you can buy an energy asset on the NSX. We are the only listed utility company on the NSX,” ANIREP Managing Director, Iyaloo Ya Nangolo said.
“I am very happy. It’s a good day for Namibia and a good day for the company. For the first time since independence, we are bringing the PIC onto our capital markets. Namibia has always been seen as a small market for big investors like them and this puts us on the map.”
The ANIREP MD said the company with its N$163 million kitties, was now on the hunt for assets that are within the renewable energy sector.
“We will now move with diligence to do acquisitions within the renewable energy space so that we can fulfil our mandate from our shareholders.”
Nangolo said the PIC transaction, will see a shareholder change in the company, with the South African fund expected to merge as the second-largest single shareholder with a 30 percent shareholding.
“Our shareholder structure will change because this is a significant investment made. We have a new structure,” he said.
He, however, said no board seats will be made available to the PIC as part of its investment, as the fund could still have a say in investment made through its participation at shareholder meetings to be held to approve any planned investment by the company.
“Because our mandate now is to undertake acquisitions, they will come here to do the voting on any of our planned acquisitions. The requirements of capital pool companies are that shareholders would the voting to acquire something,” Iyaloo Ya Nangolo said.
Alpha Namibia Industries Renewable Power Limited (ANIREP) is the second capital pool company (CPC) to be listed on the NSX and was established in 2018 to facilitate the investment of long-term capital in infrastructural renewable energy projects in Namibia and sub-Saharan Africa, especially around renewable energy generation, transmission, and distribution.