[South Africa] Hulisani aquires Momentous Technology, announces maiden results
JSE-listed Hulisani Limited. an investment holding company focused on energy opportunities, has announced its acquisition of Momentous Technology for R122 million. Momentous Technology is a holding company, with its only asset being its shareholding in Rustmo1, an operational 7 MW solar photovoltaic (PV) plant.
This is Hulisani’s second acquisition this year. It gives the business an indirect controlling shareholding in Rustmo1, established November 2013, and the first independent power producer to be connected to the grid.
Marubini Raphulu, Hulisani’s Chief Investment Officer, says the Rustmo1 acquisition is an important step in the company’s long-term strategy. He explains, “Hulisani’s strategy is to acquire and invest in a diverse basket of energy producing assets with potential for growth. Following the acquisition of Kouga Wind Farm earlier this year, the Rustmo1 solar PV farm not only expands our energy investments into solar, but also marks our first investment in an operational power producer. As such, the move is an important milestone in our liquidity and diversity journey and further cements Hulisani’s progression from our initial JSE classification as a special purpose acquisition company (SPAC) to an investment holding company.”
Hulisani earned interest income of R25.7 million against expenses of R31.7 million. While this resulted in a loss of R6 million, included in the expenses were the once off costs of the listing fee of R2.4 million and escrow safe custody fees of R2.6 million. In addition, the acquisition made in March incurred costs of R1.2 million, which were expensed in the current year, while income from the acquisition will only be realised in the 2018 financial year. Notwithstanding the timing of these costs, Hulisani posted a loss of 13 cents per share, with headline earnings per share showing a loss of 1 cent per share. The net asset value per share at the 28 February 2017 is R9.88 per share.
In its first year of operation, the business has reviewed thirty potential transactions and bolstered its skilled professional team. “Hulisani is set for growth through capital raising and organic growth and we expect to begin to see the impact of our new investments within three years,” explains Raphulu.