CIG buys smart-meter firm Conlog for R850m from Schneider Electric
Consolidated Infrastructure Group says its purchase of smart-meter firm Conlog should lift its turnover 14% and taxed profit 32%
JSE-listed Consolidated Infrastructure Group (CIG) has bought African prepaid and smart-meter provider Conlog from Schneider Electric for about R850m, effective immediately. The diversified industrial group says that on a normalised basis the turnover and profit after tax effect on CIG, based on financial 2015 annual results, would be a boost of 14% and 32%, respectively. A rights offer to shareholders will fund the upfront R700m cash portion of the purchase price. In March 2017, CIG will pay an additional deferred payment of R50m and then a final earnings-dependent payment of up to R100m. "Currently, Conlog is on track to exceed the earnings before interest, tax, depreciation and amortisation target which served as the basis of the earn-out ceiling," the group said on Monday. It said it would fund the earn-out payment from existing cash resources.
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