Merger with Fairfax will ease CIG’s liquidity struggles
CIG CEO Raoul Gamsu says local trading conditions have been catastrophic
Consolidated Infrastructure Group (CIG) is set for a cash injection after the Competition Tribunal approved its merger with Canadian-based investment firm Fairfax Africa Holdings (FAH). In addition to improving liquidity, the move will boost CIG’s efforts to turn around struggling power infrastructure subsidiary Consolidated Power Projects Group (Conco). CIG CEO Raoul Gamsu said the company had struggled in the SA market because of the dearth of investment by state-owned companies. Conco provides power and extraction services, such as the supply of low-, medium-and high-voltage solutions, electrical substations, overhead power lines and renewable energy. Gamsu said local trading conditions had been catastrophic. The company needed additional capital to entrench itself in the international market, he said.
Earlier in 2018 CIG said the transaction with FAH was part of steps to review and evaluate the company’s long-term funding requirements and capital structure. At the time, CI...