Deal of the Year
DealMakers Annual Gala Awards
At the end of each year, DealMakers calls on the corporate finance industry to submit their nominations for Deal of the Year.
With the assistance of the independent panel, and taking into account the number of nominations each deal has received, a shortlist of 3 - 5 deals is announced.
These deals are then evaluated by the Independent Panel and they select a winner based on a variety of criteria, including but not limited to:
The transformational aspects of the deal | The execution complexity | The deal size | The potential value creation of the deal
2022 Deal of the Year
Shortlisted nominees for the Brunswick Deal of the Year 2022
The winner will be announced on 21 February 2023 at the ANSARADA DealMakers Annual Gala Awards, to be held in Sandton.
Mediclinic International take private
The offer by Remgro and MSC Mediterranean Shipping (MSC) to Mediclinic shareholders owning the remaining 55.44% stake, provided shareholders with an exit premium of 50% on the six-month average price at the time, valuing the offer at £2,05bn (R41,85bn). In terms of the offer, by special purpose vehicle Manta Bidco, they would receive 504 pence (R102,06) per share in cash, plus the declared final dividend of 3 pence per share.
Local Advisers:
Standard Bank, Morgan Stanley, Rand Merchant Bank, Webber Wentzel, Bowmans and Cliffe Dekker Hofmeyr.
PSG Group restructuring, unbundling and delisting
The ever-increasing discounts at which investment holding companies trade marked the catalyst for a transaction which would pursue a value-unlock initiative for shareholders through a restructuring of a nature not seen before in South Africa; one involving six JSE-listed companies, two of which were dual-listed. The value of R115.59 per share was unlocked for exiting shareholders, representing a 41.3% premium to the closing price on 28 February 2022, amounting to c. R22,54bn.
Local Advisers:
PSG Capital, Tamela, Cliffe Dekker Hofmeyr, BDO and Deloitte.
Sanlam Allianz joint venture
The deal announced in May 2022 was almost two years in the making, and valued in excess of R33bn. The combined African operations of Sanlam and global integrated financial services group, Allianz creates the premier pan-African, non-banking financial services entity, operating in 27 countries across the continent, with positions strengthened in 12 overlapping countries. The ambition is to be a ‘Top 3’ insurance company in all chosen markets.
Local Advisers:
Standard Bank, J.P. Morgan, Webber Wentzel, Bowmans and PwC.
Gold Medal Award
2021 Deal of the Year
Vodacom's acquisition of a 55% stake in Vodafone Egypt
Shaun van Biljon (Vodacom) Luqman Salasa (Vodacom), Marylou Greig (DealMakers), Diana Munro (Brunswick), Raisibi Morathi (Vodacom), Sanushka Chetty (Vodacom) and Arie Maree (Ansarada)
The R41 billion share and cash deal for a controlling stake in Egypt’s largest network operator from Vodafone will generate clear benefits for all parties involved. Vodacom will expand its reach beyond its key markets, scale its multi-product strategy to a largely unbanked population, and benefit from attractive synergies in big data capabilities. The single transaction is expected to diversify and accelerate Vodacom’s medium-term operating profit growth potential into double digits. The transaction will simplify the management of Vodafone’s African holdings and increase its interest in Vodacom to 65.1%.
The local advisers to the deal were:
Comment from the Independent Panel: The panel liked this pan-African deal; it combines South Africa’s largest mobile operator with Egypt’s telecom market leader. Successfully navigating the complexities of highly regulated companies in different jurisdictions was well executed. This deal creates scale and brings together complimentary offerings in two of Africa’s key economies, enabling the Vodacom group to diversify and accelerate its growth in a single transaction.
Other nominees for 2021 were:
Prosus/Naspers voluntary share exchange offer
The internet company announced in May its plans to acquire up to 45.33% of the issued Naspers N ordinary shares in a share swap with the aim of reducing the discount gap between Naspers and the value of its underlying investments, particularly its stake in Tencent. The transaction’s objective was to reduce Naspers’ approximate weighting on the JSE from 23% to around 13%. The swap increases the Prosus holding in Naspers to 49.5% while Naspers retains control of Prosus with a 57.2% stake. The proposal was not without its difficulties with asset managers airing concerns about its complexity and the ultimate value-add for shareholders.
The local advisers to the deal were:
Morgan Stanley, Goldman Sachs, Investec Bank and Webber Wentzel
Heineken International’s acquisition of Distell
The complex deal, two years in the making, will see Distell combine its cider, ready-to-drink-beverages and spirits and wine business with Heineken’s mostly beer interests into an unlisted public holding company Newco (of which Heineken will own a minimum of 65%). A separate business Capevin, will hold the remaining assets including the Scotch whisky spirits business for which Heineken will make an offer for a minority shareholding of up to 37%. The initial restructure of Distell, the unbundling of the Capevin stake and the subsequent scheme of arrangement which involves both cash and shares in an unlisted entity, provide Distell shareholders with no less than six different election outcomes.
The local advisers to the deal were:
Rand Merchant Bank, KPMG, ENSafrica, Webber Wentzel, Cliffe Dekker Hofmeyr, PwC, BDO and Deloitte
2020 Deal of the Year
Gold Medal sponsored by
Altron demerger of Bytes Technology
In April 2020, Altron announced it was looking to demerge Bytes UK and to separately list it on the LSE with a secondary listing on the JSE. The decision was made to unlock value for shareholders as the UK business was identified as being materially undervalued when compared with its UK peer group. A minimum listing value of c.R9.4 billion was put in place by management who was willing to call off the listing if it did not achieve the price target. The company listed in December with a market capitalisation of R16,3 billion.
Local Advisers
Mteto Nyati, Group Chief Executive | Altron
Other nominees for 2020 were:
Sasol disposal of a 50% stake in Lake Charles Chemicals Project
The $2 billion (R33 billion) joint venture deal was part of Sasol’s plan to reduce debt, improve debt covenant compliance and enhance liquidity after a series of cost overruns and delays at its Lake Charles chemicals project were exacerbated by the collapse in the oil price and a global economic slowdown as a result of the COVID-19 pandemic. The deal cuts debt to $8 billion from $10 billion, gives the company an opportunity to stay in while shifting its portfolio toward specialty chemicals and increases its focus on an area where the company enjoys differentiated capabilities and strong market positions.
The local advisers to the deal were: Merrill Lynch, ENSafrica, PwC, KPMG and Deloitte.
The Foschini Group’s acquisition of JET
Edcon, the owner of value retailer JET filed for administration in May 2020 after losing R2 billion in sales as a result of SA’s lockdown restrictions. The R480 million cash deal sees The Foschini Group (TFG) acquire 382 select stores across SA, Botswana, Lesotho, Namibia and Eswatini and take on 4,800 of its staff. The deal gives TFG a significant entry into an increasingly important value retail sector, at scale and at an attractive price which would have been costly and difficult to replicate organically.
The local advisers to the deal were: Rand Merchant Bank, UBS, ENSafrica, EY and Matuson Associates.
Tongaat Hulett’s disposal of its starch division to Barloworld
The announced R5,35 billion February 2020 acquisition for Barloworld was in line with its focus to transform its investment portfolio to focus on Industrial Services and Consumer Foods as key verticals. However in May and again in August, as a result of the impact on company earnings of COVID-19 and the strict lockdown, Barloworld issued a MAC (Material Adverse Change) notice to Tongaat, increasing the complexity of the transaction. The final determination was that a MAC had not occurred and the deal was closed at the end of October. The disposal price was adjusted to R5,26 billion.
The local advisers to the deal were: PwC Corporate Finance, Absa CIB, Nedbank CIB, Bowmans, DLA Piper, Webber Wentzel, Rothschild & Co, Java Capital and Deloitte.
2019 Deal of the Year
Gold Medal sponsored by
Acquisition of Pioneer Foods by PepsiCo
The R23,63 billion transaction, one of PepsiCo’s largest acquisitions outside the US, is a vote of confidence in the South African economy. PepsiCo intends to use SA as a hub for expansion throughout Africa. Through PepsiCo’s global footprint, Pioneer Foods will have access to new markets and the opportunity to improve its ability to compete more effectively on the African continent and beyond.
Watch the interview with Brunswick's Rob Pinker at the event
Other nominees for 2019 were:
Acquisition of Clover Industries by Milco Consortium
The R4,8 billion all-cash offer by the global investment consortium with strong local partners, aims to deliver and unlock growth, impacting not only the local dairy industry but also on the dairy industry across Africa. Milco is a key differentiator in today’s challenging business environment with access to international brands and know-how, connections and operating experience in sub-Saharan business.
The local advisers on the transaction were: Rand Merchant Bank, Nedbank CIB, Werksmans, Cliffe Dekker Hofmeyr, Bernadt Vukic Potash & Getz, ENSafrica, Herbert Smith Freehills South Africa, Webber Wentzel and PwC.
Impala Platinum’s acquisition of North American Palladium
The acquisition of the Canadian-based primary platinum group metal producer valued at R11,4 billion, is in line with Implat’s strategy to reduce costs and streamline operation in order to improve its competitiveness in the global market. The transaction minimises the Group’s reliance on SA for the bulk of its revenues.
The local advisers on the transaction were: Macquarie Advisory and Capital Markets South Africa, Nedbank CIB, Baker McKenzie and Webber Wentzel.
Naspers’ unbundling and listing of Prosus
The two-step transaction by Naspers, one of several over the past few years, formed part of its strategy to reduce sum of the parts (SOTP) discount. The unbundling and listing of Prosus on the Euronext Amsterdam and the JSE (with an opening market capitalisation on the JSE of R1,95 trillion) created the largest consumer internet company in Europe, providing a significantly broader set of investors with direct access to its unique portfolio of high-growth international internet assets.
The local advisers on the transaction were: For the unbundling - Morgan Stanley, Investec Bank, Webber Wentzel and Glyn Marais. For the listing – Morgan Stanley, JP Morgan, Merrill Lynch, Goldman Sachs, Citigroup Global Markets, Investec Bank, Webber Wentzel, Glyn Maris and PwC.
2018 Deal of the Year
Sam Riley - Ansarada, Neal Froneman - Sibanye-Stillwater, Ingrid Johnson - Old Mutual, Itumeleng Mahabane - Brunswick and Marylou Greig - DealMakers
The Managed Separation of Old Mutual Plc
Advisers to the Deal
Gold Medal Award
Other Nominees for 2018:
Naspers' $10 billion (R116 billion) accelerated bookbuild of Tencent
Sanlam's acquisition of the remaining 53.4% stake in SAHAM Finances
Vodacom's R16,4 billion B-BBEE ownership transaction
2017 Deal of the Year
Vodacom acquisition of an indirect 34.94% stake in Safaricom
Arie Maree (Ansarada), Marina Bidoli (Brunswick), Sainesh Vallabh (Vodacom), Nadya Bhettay (Vodacom), Colin Coleman (Goldman Sachs), Neal Froneman (Sibanye-Stillwater), Willem Baars (Goldman Sachs) and Till Streichert (Vodacom)
Advisers to the deal:
Financial Advisers: Goldman Sachs; UBS
Independent Expert: Deloitte
Sponsors: Nedbank CIB
Legal Advisers: ENSafrica; Webber Wentzel; Cliffe Dekker Hofmeyr
Reporting Accountants: PwC
Gold Medal Award
Other Nominees for 2017:
Barclays sell down of Barclays Africa
Distell restructure
Firstrand's acquisition of Aldermore
2016 Deal of the Year
Acquisition by Sibanye Gold of Stillwater Mining
Advisers to the deal:
Financial Advisers: Citigroup Global Markets; HSBC Bank plc; Quinsele Resources; BofA Merrill Lynch
Sponsors : JPMorgan
Legal Advisers: ENSafrica; Linklaters; Jones Day; Hollard & Hart
Reporting Accountants: KPMG
Arie Maree (Ansarada), Bryony Watson (Sibanye Gold), Charl Keyter (Sibanye Gold) and Marina Bidoli (Brunswick)
Gold Medal Award
Other Nominees for 2016:
Bidvest / Bidcorp unbundling
Pick 'n Pay pyramid unwind
Merger of new Europa Property Investments and Rockcastle Global Real Estate
2015 Deal of the Year
Samuel Pearson (Standard Bank), Neal Froneman (Sibanye Gold), Natalie Di-Sante (Standard Bank) and Stephen Dearing (Ansarada)
Acquisition by Anheuser-Busch InBev of SABMiller
Advisers to the deal:
Financial Advisers : Standard Bank; Deutsche Bank; JPMorgan; Goldman Sachs International; Lazard; BNP Paribas; Merrill Lynch International; Robey Warsaw; JPMorgan Cazenove; Morgan Stanley
Sponsor : JPMorgan
Legal Advisers : Bowman Gilfillan; Webber Wentzel; ENSafrica; Freshfields Bruckhause Deringer; Cravath, Swaine & Moore; Clifford Chance; Linklaters; Hogan Lovells International; Hogan Lovells US; Cleary Gottlieb Steen & Hamilton
Gold Medal Award
Other Nominees for 2015:
Acquisition by Sibanye Gold of Aquarius platinum
Reverse takeover by Mediclinic of Al Noor Hospitals
Acquisition by Sibanya Gold of the Amplats Rustenburg operations
Acquisition by Oceana of Daybrook Fisheries
2014 Deal of the Year
Acquisition by Woolworths of David Jones
Financial Advisers:
Rothschild, Standard Bank
Sponsor:
Rand Merchant Bank, Standard Bank
Legal Advisers:
Webber Wentzel, Linklaters, Gilbert + Tobin
Reporting Accountant:
Ernst & Young
Advisers to the deal:
Arie Maree (Ansarada), Ian Moir (Wooloworths), Daryl Wray (Cell C) and Charl Keyter (Sibange Gold)
Gold Medal Award
Other Nominees for 2014:
Standard Bank's disposal of a 60% stake in Standard Bank Plc to ICBC
Growthpoint's acquisition of Acucap
Vodacom's acquisition of Neotel
Exxaro Resources' acquisition of TCSA
Sun International's acquisition of an additional stake in Monticello
Northam Platnuim's BEE deal
Steinhoff's acquisition of Pepkor
Creation of Coco-Cola Beverages Africa