Old Mutual Alternative Investments (OMAI) Hybrid Equity (HE) has concluded a broad-based black empowerment deal to assist in funding the acquisition of a 6.56% shareholding in Imperial Logistics South Africa (ILSA) by a black women-owned and managed investment holding company Afropulse Group.

As part of the overall transaction, Hybrid Equity (HE) will provide preference share funding of approximately R112-million as part of a quasi-equity related funding package to Afropulse Group to fully fund the transaction.

The equity and preference share funding will be provided to a special purpose vehicle, a wholly-owned subsidiary of the Afropulse Group, jointly led by Phumzile Langeni and Bongi Masinga.

The transaction comes amid a decline in major B-BBEE transactions – those valued at over R25-million – recorded between 2018 and 2020 and announced last year by industry regulator the B-BBBE Commission.

Co-head OMAI HE Mujaahid Hassan said: "We are excited by the prospects this transaction means for transformation, particularly in the logistics industry. As a funding partner, HE is proud to have facilitated this deal that not only drives transformation forward but places businesswomen at the centre of empowerment in South Africa."

Abdu-Rahman Abrahams, co-head of OMAI HE, added that "There currently is a scarcity of empowered equity capital available in South Africa and in this environment, HE is determined to provide innovative funding solutions that can have a significant impact on economic transformation and offer high-quality investment opportunities."

The B-BBEE consortium comprises of Afropulse Group and Willowton Group (25% of ILSA Group). Afropulse and Willowton are pre-existing B-BBEE partners to Imperial, after completing a B-BBEE transaction in 2018 and 2019 respectively, with the listed Imperial Group – ILA (Imperial Logistics Advance). This transaction ensures that ILSA meets its strategy of maintaining its strong B-BBEE empowerment credentials.

Afropulse Chairman and co-founder Phumzile Langeni said: "We are incredibly proud of our track record with the Imperial Group since 2018. We are delighted that funders with the scale and investment expertise have seen this value and put their faith in us as a strategic partner. We believe that this is the time for women in SA to establish a big footprint in a vital economic sector such as logistics".

Afropulse CEO and co-founder Bongi Masinga said: "It was a complex transaction to get right, and now we can focus on the value we can bring to the business. We believe this is a great partnership that will yield benefits for us as partners to Imperial Logistics SA and our strategic funding partners HE. It is a great addition to the growing Afropulse investment portfolio".