At the end of June, the Group announced a series of transactions, which will see it expand its African investment portfolio, with a particular focus on renewable energy and financial services that promote financial inclusion. In a SENS announcement issued yesterday afternoon, we advised our shareholders of the Board’s decision to implement these transactions in stages, to ensure that Ecsponent maximises the benefit from each transaction.
In our recent results announcement, we revealed that our total assets increased by 84% compared to the previous reporting period. This growth builds on the past results, with the planned transactions continuing our strategy of investing in assets that will provide medium to long-term capital growth, and that will:
- position the Group for future value-enhancing investment opportunities;
- create an efficient and professional management structure for the Group’s equity investments;
- improve the balance sheet concentration exposure;
- reduce concentration risk;
- provide a balance between the Group’s short-term cash generative assets and longer-term growth assets; and
- increase the Group’s equity holding in assets considered to have high growth potential.
These transactions will support the ongoing growth trajectory the Group has reflected over the past seven years, by contributing to our portfolio growth and cash flows in the medium term. More importantly, they allow us to significantly grow the portfolio and diversify the group across sectors and geographies, introducing further hard currency revenue streams to the business.