Royal Boskalis Westminster has scompleted [ds_preview]the sale of its stake in SMIT Amandla Marine (SAM). The possible sale had already been announced in March 2016. The stake was sold to management and local investors, thereby returning the business of SAM to 100% South African ownership.
SMIT Amandla Marine, provider of specialist marine solutions in the Southern African region, has been acquired by African Marine Solutions Group (AMSOL), owned by a consortium including SMIT Amandla Marine management and employees, the Mineworkers Investment Company, Pan-African Capital Holdings and RMB Ventures.
Boskalis stated they received a cash sum of approximately 50 mill. € for the sale. The activities and results of SAM will be deconsolidated with effect from 1 December 2016. Following the sale, Boskalis will continue to be permanently represented in the region through the activities of SMIT Salvage.
According to AMSOL Managing Director Paul Maclons, who joined SMIT Amandla Marine in 2004, the business opportunity for a management buyout was the catalyst for this transaction. »We are excited to build a great South African company and to remain relevant to our clients in the Energy, Mining, Ports and Maritime sectors into the future.«
Acquisition of SMIT Amandla Marine supports growth
Mary Bomela, the CEO of the Mineworkers Investment Company, believes the acquisition supports the objectives of Operation Phakisa: »In facilitating the transformation of the maritime economy in South Africa, AMSOL is now in a unique position to support the continued growth and transformation of the sector in the region – with the transaction including SMIT Amandla Marine’s business in Namibia and Mozambique. They bring their market leadership and expertise to the acquisition, and have been guided by a strong management team. We look forward to all the possibilities and how this will create a difference.«
The sale of the business to AMSOL is in line with a stated commitment by shareholders to capacitate the company over time and return it to 100% South African ownership. This ensures that the business remains relevant in its chosen markets, which include Africa and the Indian Ocean Island region, and is able to continue to meet expectations of local and international clients who demand high Safety, Health, Environmental Protection and Quality Standards, and a commitment to localisation.
Looking ahead, the company’s strategy will support sustainable regional economic transformation in a niche industry where barriers to entry remain high.
Dr Iraj Abedian, the CEO of Pan-African Capital Holdings, underscores this point: »In identifying the synergy that consortium partners have in terms of a commitment to sound corporate governance principles, transformation, regional growth and value creation, we believe that AMSOL is now better placed than ever to continue meeting the needs of clients in the region well into the future, and to make a meaningful contribution to regional economic and investment integration.«
SMIT Amandla Marine will transition to the AMSOL brand by the end of 2016.
