Sectional Poles

Sectional Poles is a niche supplier of masts and poles in South Africa. It has been operating since 1966 and has a growing export profile across the SADC region. The transaction saw RMB Corvest acquire an effective 43% stake in the business while Shalamuka Capital and Talib Sadik (an individual investor) acquired a respective 22% and 15% interest, significantly strengthening the BBBEE scorecard of Sectional Poles.

The partnership with Shalamuka and Sadik enabled Sectional Poles to participate in private and public tenders. Sectional Poles was able to continue combining its technical expertise in a highly competitive market.

Retention of the skilled management team was significant to Managing Director, Daan van der Sijde, and Technical Director, Phil Koen, will remain with the business, taking up a minority stake in the new entity. “The on-going demand for services from South Africans ensures both continued expansion and the simultaneous requisite servicing of current infrastructure,” noted van der Sijde. “The company is well-positioned to capitalise on these opportunities in addition to expanding its current Southern African footprint. Telecommunication providers, for example, are experiencing double-digit growth in their subscriber base: the overall need for growth is evident.”

“Beyond its design, manufacturing and installation capacities, which include the provision of civil works such as foundation-laying and all corresponding electrical requirements, the business completes its exceptional service provision by maintaining a fleet of delivery vehicles supplying end-product to customers,” explained Brown. “This level of service, in conjunction with factors such as the present demand for faster, more advanced data networks in telecommunications across the SADC region, positions Sectional Poles bullishly in the market.”

Continued delivery of high quality products at competitive prices and adherence to deadlines, a notable quality regarding local infrastructural projects at present, ensure the currency of the brand. Sectional Poles boasts a broad customer base, supplying local GSM operators, in addition to other telecoms operators across the region.

“As the current book stands, the business does not have significant concentration risk to a single customer, which is an exceptionally healthy indicator,” noted Brown. “Historically, the company has operated with low levels of debt and has generated high yield, adjusting to the market with relative ease considering its low reliance on CAPEX.”

“With an experienced management team holding interest in the business, in addition to existing contracts with multiple major players across the lighting and telecommunications sectors – from municipalities to dominant cell-phone service providers – this promises to be an exceptionally rewarding investment,” concluded Brown.