CONSOLIDATED Infrastructure Group (CIG) on Monday announced its first African acquisition, which it hopes will spur further purchases on the continent.

CIG — through its wholly owned Mauritian subsidiary, Consolidated Infrastructure Group-Angola 1 — on Monday announced the acquisition of a 30.5% participation interest in Angola Environmental Serviços (AES), for a purchase consideration of $15.25m.

The group, which builds electrical infrastructure and supplies heavy building materials to the construction industry, saw its share price rise 2.18% to R14.51 on Monday after announcing the deal.

AES was incorporated in Angola in 2005 and supplies blue-chip international oil companies with specialised waste-management services.

"Since 2010, we have been focused on fast-growing, promising African countries. Angola is one of these. AES will help us get into oil work in the country," CIG CEO Raoul Gamsu said on Monday.

Initially, CIG wanted 50%, but the company settled for 30.5%.

"The deal worked with a consortium which got a portion of AES. Over the next five years, we hope to get a majority ownership," Mr Gamsu said.

The deal is aligned with CIG’s growth strategy, which is focused on operating many high-performing infrastructure-and service-related businesses in Africa.

"The acquisition diversifies CIG’s current offering, with a new line of business in specialised services of waste management and an opportunity to tap into the high-growth potential of the oil and gas sector, which is currently the bedrock of the Angolan economy," CIG said.

The AES deal is subject to conditions.

CIG anticipated 30% of the purchase price would be settled in cash, with the remaining 70% settled through a placement of additional equity.

Mr Gamsu said future acquisitions could be in Mozambique, Ghana and Tanzania. However, CIG would continue to provide high-voltage power solutions in South Africa and develop ways of using renewable energy.

The AES acquisition was classified as a category two transaction in terms of the JSE’s listings requirements. As such, no further documentation or approval by shareholders was needed to implement the acquisition.

AES reported a turnover of $42.6m in the year to December 2011. A major portion of AES’s turnover was generated from multiyear contracts with international oil companies for the provision of waste-management and cleaning services.