Transaction Summary
Old Mutual Private Equity (OMPE) and Sphere Holdings (Sphere), alongside Much Asphalt’s management, are acquiring Much Asphalt (Pty) Limited (Much Asphalt) from AECI Limited for R1.1 billion ($62.3 million) in a part-equity, part-debt transaction. Much Asphalt, South Africa’s leading asphalt and bituminous products manufacturer for road construction and maintenance, is the only asphalt producer with a national footprint and has operated in Namibia since 1989.
This transaction marks the first investment from OMPE Fund VI, launched in December 2023. Expected to close in Q1 2025, it has received Johannesburg Stock Exchange (JSE) approval and awaits regulatory clearance. The transaction, subject to a “locked-box” structure effective 31 December 2024, caps the net consideration payable at R1.5 billion ($85.5 million). As such, AECI cannot make any payments or transactions that affect the company’s net asset value after this period, thus limiting financial exposure for OMPE and Sphere. AECI previously acquired a 98%
