INDUSTRIAL services conglomerate Consolidated Infrastructure Group (CIG), which has successfully built profitable operating platforms by making selective acquisitions in the past eight years, could pay up to R850m to buy Conlog, a prepaid and smart electricity meter provider.On Thursday, CIG CEO Raoul Gamsu said Conlog, which generates revenues of about R550m, would fit the company’s existing electricity services operations like a glove."Conlog is an ideal extension to our primary electricity infrastructure operation, Conco, and further diversifies our earnings into a fast-growing sector," Gamsu said.The acquisition will be fully underwritten, with CIG planning a R750m clawback rights issue later in 2016 with Investec as the primary underwriter and a consortium of existing shareholders as co-underwriters.Gamsu stressed the acquisition was on a "cash-free, debt-free basis", which provided CIG with leverage to increase borrowing capacity if needed.CIG acquired Conlog, which has been i...
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