8 October -Smart meters may be the solution to cutting down on electricity consumption
CAPE TOWN – Consolidated Infrastructure Group (CIG) on Thursday said it had agreed to buy Conlog, a manufacturer and distributor of prepaid electricity solutions, for up to R850 million.
The purchase price comprises an initial payment of R700 million and a further amount of between R50 million and R150 million depending on Conlog’s earnings for 2016.
Conlog designs, manufactures and sells prepayment and smart electronic metering devices, and provides utilities and municipalities with services including revenue management and protection, prepayment with smart load control and load management.
CIG said in a statement that the importance of pre-paid meters had been demonstrated across Africa.
The purchase of Conlog would extend CIG’s products and services to its utility, municipality and commercial clients beyond the generation and transmission sectors. CIG added that the acquisition would extend its presence across all segments of the power sector value chain.
Additionally, CIG said, the deal supported the company’s regional diversification strategic priority with 60-70 percent of Conlog’s sales coming from outside South Africa.
“CIG is certain that Conlog’s young and passionate management team will fit seamlessly within the group’s culture prioritising profitable growth and client-focused delivery,” the statement added.
“As assessed against CIG’s long-standing growth strategy, the acquisition delivers on the strategic objective of transformative M&A: Seek and acquire infrastructure companies and projects which significantly enhance the value of the group, strategically and financially.”