African Access takes stake in SA Earthworks

african access takes stake in sa earthworks

black-owned mergers and acquisitions holding group african access holdings said on friday that it had acquired a 26% interest in sa earthworks for r52m.

african access ceo shaun battlemann said the acquisition in sa earthworks, which specialises in bulk earthworks, roads, demolitions, quarrying and mining, was strategic because it came at a time “when demand for construction services is high and skills are in short supply”.

“we believe our investment will assist sa in meeting the infrastructure challenges it faces, allowing this country to reach its full potential,” he said .

african access has been highly acquisitive in its first five years with about 30 subsidiaries bought during the period. its interests are held across sectors such as property development, it and communications, marketing and advertising, as well as the leisure and hospitality sectors. it also holds a 0,68% interest in nedbank, which is worth about r35m.

battlemann said its investments delivered a turnover of r2bn a year.

he said sa earthworks had achieved a growth rate of more than 400% a year in the past two years and also had a “highly effective transport fleet”.

in terms of african access’s five-year plan, it had wanted to become involved in the earthworks sector, battlemann said.

“it was one of the gaps in our strategic plan. we are already involved in property development,” he said.

negotiations with sa earthworks began last year and the deal was finalised earlier this year.

battlemann said that one of the terms of the deal was that african access also received an option to acquire another 25% at a later date.

he said investment in sa earthworks would assist african access in its ventures in the united arab emirates (uae), where it has started operating.

battlemann said the uae “has a huge development pipeline in urban structure framework until 2030”. there were big opportunities for earthworks and construction companies.