25 April 2024
Exchange-Listed Companies
Following market speculation, Anglo American (Anglo) has confirmed that on April 16, 2024, it received an unsolicited, non-binding and highly conditional combination proposal from BHP. The proposal comprises an all-share offer for Anglo American by BHP and would, according to Anglo American, be preceded by separate demergers by Anglo American of its entire shareholdings in Anglo American Platinum and Kumba Iron Ore to Anglo American shareholders. In addition, shareholders of Anglo would receive 0.7097 shares for each ordinary Anglo share. Based on closing market prices of 23 April 2024, the proposal represents a total value of c. £25.08 per Anglo ordinary share including £4.86 in Anglo Platinum shares and £3.40 in Kumba shares, valuing Anglo’s share capital at £31,1 billion. The two parts of the proposal would be inter-conditional. Anglo has a primary listing on the LSE and secondary listings on the JSE, BSE, NSE and the SIX Swiss Exchange. The combined entity would retain BHP’s global listings on the ASX, LSE, JSE and NYSE. Anglo is taking the proposal under advisement.
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Trustco has advised that it will acquire a further 1,135 shares in Namibian entity Legal Sheild Holdings from Riskowitz Value Fund. Prior to the acquisition, Trustco holds an 80% shareholding in the investment entity which holds Trustco Insurance, Trustco Life and Trustco’s real estate portfolio. Trustco will issue 400 million new shares at R1.17 per share (Trustco’s share price is currently trading at R0.20 per share). The shares will be issued in two tranches – 200 million shares are due after the effective date and the second tranche 12 months after the issuance of the first.
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On March 8, 2024, Mondi plc announced it would make an offer to acquire DS Smith. Having completed a due diligence and following the announcement on April 16, 2024, of a competing bid by International Paper Company, Mondi has decided that an all-share merger would not be in the best interests of its shareholders.
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Unlisted Companies
Local cybersecurity distributor Maxtec Peripherals has been acquired by UK headquartered QBS Technology as part of that company’s expansion strategy within the META region. Maxtec provides a distribution platform for African Cybersecurity Channel Partners to provide Software, Hardware, Managed Services and Rental Financing across all verticals. For Maxtec, the deal will facilitate further expansion into new territories and sustain growth in existing regions.
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TransPerfect, the world’s largest provider of language and AI solutions for global business has announced the acquisition of South Africa-based Content Lab, a provider of audiovisual localisation services for media and entertainment clients. Content Lab will be renamed TransPerfect Media South Africa. Financial terms were undisclosed.
18 April 2024
Exchange-Listed Companies
Sun International is to dispose of 43.3% of its 49.3% equity stake and 100% of its loan account in Tourist Company of Nigeria (t/a Federal Palace Hotel) to Nigerian Rutam Finance for an aggregate cash consideration of R275 million ($14,55 million). The remaining 6% equity interest held by Sun International will be sold in due course. The transaction is in accordance with the company’s stated intention and strategy to exit its investment in Nigeria.
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Following the joint announcement by Canal+ and MultiChoice which set out the terms of the mandatory offer, Canal+ has notified shareholders that it has, this week, acquired a further 18,578,131 MultiChoice shares in open/off market transactions. Canal+ now holds an aggregate of c.40.83% of the MultiChoice shares in issue. The price at which these shares have been acquired have ranged from R115.95 to R119.92, below the mandatory offer price of R125.00 per share.
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Goldway Capital Investment has reminded shareholders of MC Mining in its sixth Supplementary Bidder’s Statement that its offer to acquire outstanding shares will close on 22 April 2024. Results of the offer will be announced on 29 April 2024.
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Unlisted Companies
Global financial services provider Apex Group has acquired IP Management Company (IPMC). The South African unit trust management company is a collaboration between established financial services businesses which have operated unit trust funds independently for more than fifteen years, but which co-exist in a synergistic relationship within IPMC. Clients of IPMC will benefit from access to the Group’s global single-source solution which includs digital banking, fund raising, distribution and administration solutions as well as ESG rating, reporting and advisory services. In March 2023 Apex acquired Boutique Collective Investments when it announced the acquisition of local Efficient Group.
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South African private equity investor Vuna Partners has acquired a 40% stake in Ferreira Fresh, a family-run fresh and frozen produce provider of fruit and vegetables with a delivery footprint covering Gauteng and extending into neighbouring provinces. Financial details were undisclosed.
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M&C Saatchi Abel and the South Africa Group management is to acquire the shares owned by the UK-based global group in the local operations in a deal mooted to be in the region of £5,6 million. M&C Saatchi Plc will continue to collaborate with the South African operations, partnering with them on the African continent. Seen as a vote of confidence the deal will further accelerate the group’s transformation ownership agenda whereby the BEE shareholding value will increase by 40% in the new structure.
11 April 2024
Exchange-Listed Companies
Sanlam has increased its stake in Shriram General Insurance (SGIC) and Shriram Life Insurance Company (SLIC). India is seen as a core market and strategic pillar to achieving long term earnings growth and sustainable shareholder value creation for Sanlam. Sanlam has acquired a further 10.74% stake in SGIC and 12.02% in SLIC from TPG India Investments II and Shriram Ownership Trust. The R2 billion purchase consideration will be partly funded from the net proceeds of its R3,3 billion disposal of a 1.56% sale of its Shriram Finance (SFL) stake to Shriram Value Services. Following the transaction, Sanlam’s effective economic shareholding in SGIC will increase to 50.99% and to 54.40% in SLIC. Its shareholding in SFL will decrease to 9.54%.
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Shoprite has teamed up to form a venture capital fund with four global grocery leaders – Ahold Delhaize (US, Europe, Indonesia), Tesco (UK, ROI, Europe), Woolworths Group (Australia, New Zealand) and Empire Company/Sobeys (Canada) with Shoprite representing the African footprint. The new collaborative retail venture capital fund, W23 Global, will seek to invest US$125 million over five years in the world’s most innovative start-ups and scale-ups with the potential to transform grocery retail and address the sector’s sustainability challenges. Each retailer is an equal funder and partner in W23 Global, while their CEO’s will sit on the investment committee. Their ambition is to offer their portfolio companies faster pathways to global scale, without being exposed to a venture fund anchored by a single strategic investor.
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This week, MultiChoice told shareholders that it would work closely with Canal+ on the mandatory offer made to shareholders. Canal+ has offered MultiChoice shareholders R125 per share in cash, significantly above the minimum price of R105 required by the takeover regulations – the price at which it acquired shares which triggered the mandatory offer. If shareholders with at least 90% of eligible MultiChoice shares accept the offer, then MultiChoice may delist from the JSE. However, shareholders may have the opportunity to participate in Canal+’s own proposed listing in Europe as part of a secondary inward listing on the JSE.
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Micawber 832 purchased 185 Katherine Street (Pri-movie Park) and 1 Charles Crescent in Eastgate from Accelerate Property Fund in October 2023 for R117 million. Accelerate has announced that that Micawber has elected to nominate Emidomax in its place as the purchaser of Pri-movie Park and Minropox as the purchaser of 1 Charles Cresent (both beneficially owned by Africrest Properties and Old Mutual). All other terms and conditions remain unchanged.
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The saga of the off-market takeover offer by Goldway Capital Investment of MC Mining shares ratchet up another notch this week with the company’s board advising shareholders to consider accepting the offer. With Goldway proposing to delist the company, citing limited liquidity in the trading of the shares, MC Mining’s board believes that there is no likelihood of an alternative bid or competing proposal on more favourable terms in the near term. Goldway, a consortium which includes MC Mining’s largest shareholders Senosi Group Investment Holdings and Dendoceptin, has an 83.67% stake in MC Mining.
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Following the acquisition in March 2023 of a 74.2% stake in IQbusiness, Reunert is considering merging the business with +OneX into a single client-focused business, to create a digital integrator within Reunert ICT. The final decision on the combination is still to be made and will requiring the respective board and shareholder approvals.
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Unlisted Companies
Vantage Capital, Africa’s largest mezzanine debt fund manager, has announced that it has made a R346 million investment into Procera Group, a South African business process outsourcing (BPO) services provider. Vantage’s investment comprises the acquisition of a significant minority equity stake from the Procera founders as well as the provision of a mezzanine facility to support future strategic acquisitions by Procera. The group currently services over 50 local and international blue-chip clients across key industries such as Retail, Financial Services, Energy and Telecommunications in South Africa, Namibia, United Kingdom, United States and Australia.
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Isipho Capital has added to its portfolio with the acquisition of the Hino dealership located in Pomona Johannesburg, making it the first 100% black-owned Hino dealership in the country. The dealership is also 65% women-owned. Other businesses in its portfolio include interests in Mr Coach, which specialises in ambulances, mobile clinics, hearses, buses, and other conversions, as well as Kholeka Engineering, which is known for its manufacture of truck bodies, trailers, people carriers and water tankers.
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Enko Capital Managers has exited its 2015 investment in Madison Financial Services. The exit of the Zambian microfinance services group, by Enko Africa Private Equity Fund to Cape-based asset manager Mergence Investment Managers is by way of the sale of its entire equity and debt. Madison operates general and life insurance businesses along with microfinance activities in Zambia and a general insurance business in Tanzania.
4 April 2024
Exchange-Listed Companies
Old Mutual Africa (Old Mutual) is to sell Old Mutual Nigeria Life Assurance Company and Old Mutual General Insurance Company Nigeria to Emple Group, an investment company managed by Nigerian investors. Financial details were undisclosed. The decision follows a strategic review of the businesses with the key consideration to optimise capital management. The Group confirmed it would remain in Nigeria, maintaining a presence through its investment arm, Africa Infrastructure Investment Managers.
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Invicta subsidiary, Invicta Global Holdings plc, has acquired a UK-based supplier of consumable parts to British and European earth moving and agricultural machinery aftermarkets. The purchase of Nationwide Bearing Company (NWB) for £12,3 million (R293,6 million) provides a platform for Invicta to grow its global Replacement Parts Earthmoving business. Aside from the synergies and cost-effective savings, NWB has product ranges which can be cross sold into Invicta’s existing operations.
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Emira Property Fund, a 59.3%-owned subsidiary of Castleview Property Fund, is to dispose of a portfolio of 13 properties in Cape Town to Spear REIT. The portfolio comprises six office properties, five industrial facilities and two specialist/retail properties with the majority of the portfolio value being in office properties. The portfolio is to be acquired at no premium to its market value and is accretive to Spear shareholders from a distributable profit perspective. The R1,1 billion transaction forms part of Emira’s strategy to recycle capital. The net proceeds will be used to reduce debt and subsequently to fund new acquisitions.
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In a separate announcement, Emira Property Fund disposed of Makro Crown Mines to New Order Investments 90 in a R334,5 million deal and Market Square, Beacon Way in Plettenberg Bay to Lynx Real Estate Developments for R354 million.
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The saga of the off-market takeover offer by Goldway Capital Investment of MC Mining shares continues. Goldway has extended the close of its offer period from 5 April to 19 April 2024. Results of the offer will be announced on 29 April 2024. Goldway has a substantial shareholding of 76.4% but this is short of the minimum 82.19% level necessary to satisfy the ‘Minimum Acceptance’ condition for the Offer to proceed.
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RMB Holdings has disposed of its 7.15% stake in Divercity Urban Property Group for R50 million. The shares, repurchased by Divercity, were at a consideration below its carrying value of R87,1 million (as per RMH’s interim results).
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Unlisted Companies
Baobab Network, an early-stage investor in African startups, has acquired Reflector Marketing, a South African, strategy and branding agency. Reflector Marketing has a diverse clientele, across a diverse range of industries and spanning five continents. The agency has played a pivotal role in refining their positioning and scale by providing strategic marketing, branding and digital services tailored to individual needs.
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RNR (Right Now Response), a local breakdown management startup, has raised R12 million in a follow-on investment round led by HAVAÍC. The venture capital firm contributed R10 million following an initial R9,2 million invested in February 2023. RNR provides truck fleet managers with on-demand breakdown support via its nationwide network of vetted mechanics, electricians and repair centres.
28 March 2024
Exchange-Listed Companies
Deutsche Konsum REIT-AG has disposed of a sub-portfolio of 14 retail properties with an annual rent of c. €5,5 million. The properties were sold at a discount of 3.8% on current carrying amounts. The funds will be used in full to repay bank and bond liabilities.
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Sirius Real Estate is to expand its UK portfolio with the acquisition of Vantage Point Business Village, a multi-let business park in Gloucestershire for a total acquisition of £48,24 million. Through the purchase, Sirius will add more than 1,5 million square feet of space to its BizSpace portfolio, of which 1 million square feet is industrial space. The acquisition has been made using the proceeds of the company’s £147 million capital raise achieved in November 2023.
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MTN has accepted an offer from Africa-focused telecommunications company, Telecel, to acquire its units in Guinea-Bissau and Guinea-Conakry. The disposals are part of MTN’s portfolio optimisation strategy and investment in digital platforms and fintech offerings. Financial details were undisclosed.
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Following the failure to get the deal with Alma Trading CC across the line, Accelerate Property Fund has announced the sale of Cherry Lane Shopping Centre in Pretoria to Cadastral Assets for a cash consideration of R60 million. Accelerate purchased the property as part of a retail portfolio acquired in 2014.
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CA Sales, through its wholly owned subsidiary CA Sales Investments, is to acquire a 49% stake in Roots Sales from Mass Market Distribution Holdings. The acquisition is part of the company’s channel broadening strategy and has the option to increase its shareholding in the future. Roots has an integrated market offering that combines all commercial requirements, including sales, merchandising, auditing and delivery solutions into a single interlocking and dynamic service enterprise specialising in the main market. Financial details were undisclosed.
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In August last year Nampak announced it would undertake to implement various turnaround initiatives including an asset disposal plan to raise c.R2,6 billion. This week the group announced the disposal of its liquid cartons business in South Africa and its businesses in Zambia and Malawi for a total consideration of R450 million. The assets have been acquired by a consortium represented by RMB Corvest (FirstRand) and Dlondlobala Captial.
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After several months of cautionary announcements and speculation around Telkom’s sale of its mast and towers business Swiftnet, the company has finally released further details. Towerco Bidco, a consortium comprising an infrastructure fund managed by a subsidiary of Actis and a vehicle owned by Royal Bafokeng Holdings (RBH) will acquire Swifnet. As its BEE partner, RBH will hold at least a 30% of the acquiring entity. The aggregate consideration to be paid to Telkom will be calculated with reference to an enterprise value of R6,75 billion.
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Hot on the heels of the release of details on the listing of WeBuyCars, Transaction Capital has announced the disposal of Nutun Australia (NAH) for A$58,3 million. The sale, to Australian alternative investments company Allegro Funds, is in line with Transaction Capital’s announcement that it was reviewing its operations to reposition or dispose of non-core assets. Nutun International has entered into a strategic partnership with NAH and its new shareholder, through the on-going provision of customer and debtor engagement support services and associated technologies to NAH clients from South Africa.
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Copper 360 has entered into a memorandum of understanding with Far West Gold Recoveries (FWGR) in terms of which the DRDGold subsidiary will conduct a due diligence (DD) on Copper 360’s copper tailings dams over a 12-month period. The DD will determine the viability of the copper dumps which may result in the parties entering into a joint venture agreement, with FWGR acquiring a 50% interest and becoming the operator of the dumps.
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Telemedia, a subsidiary of the Rex Trueform Group, is to acquire a number of properties from Telelet, a company owned by The Bretherick Family Trust. The R51,5 million acquisition of the properties is seen as a strategic opportunity for Telemedia which currently partially occupies the properties for operational purposes. Additional rental revenue from remaining portions will diversify Rex Trueform’s existing portfolio of properties.
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Actis has exited its investment in Octotel and RSAweb to a consortium led by African Infrastructure Investment Managers (Old Mutual). AIIM is investing alongside STOA, an impact fund in infrastructure and energy and Thebe Investment Corporation. Octotel is a key player in the fibre-to-the-home and business markets in the Western Cape.
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Zeder Investments has received several approaches from third parties regarding the company’s portfolio investments, namely the Pome Division, previously in the Capespan Group and Zaad Holdings. Zeder will consider these approaches and will, it says, embark on formal processes where appropriate though this may take several months.
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Unlisted Companies
Medu Capital has acquired a majority stake in Optron Group, a distributor, supporter and integrator of cutting-edge technology brands. The strategic partnership, through its Medu IV fund, will aim to foster innovation, drive market expansion and deliver value to both customers and stakeholders.
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RH Managers, a local private equity firm headquartered in Johannesburg, has invested R270 million, split evenly between debt and private equity, into Herolim Private Hospital, a healthcare facility in Mthatha.
20 March 2024
Exchange-Listed Companies
Following the completion of a four-month due diligence process, Copper 360 has provided an update to shareholders on its November 2023, R200 million acquisition of Nama Copper Resources. The Nama Copper plant has exceeded expectations vis-à-vis structure, integrity and performance and a management team appointed. Copper 360 has paid a total of R140,5 million to Mazule Resources with a further R9,5 million due to be paid in the next two weeks. It will no longer pay a further R50 million to Mazule as it has concluded a new offtake agreement with Fujax UK.
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MC Mining’s independent board committee continues to advise shareholders not to accept the A$0,16 per share cash offer from Goldway Capital Investment. It draws shareholders’ attention to the independent expert’s report which has found that the offer to be neither fair nor reasonable suggesting rather, a range of between $0.214 and $0.356.
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Unlisted Companies
NCino is a financial technology company headquartered in Wilmington, North Carolina, has acquired DocFox in a deal valued at US$75 million. DocFox, based in Johannesburg, automates the process of onboarding and account opening for banks. The software will be integrated into nCino’s tech stack offering financial institutions a wider range of services to offer clients.
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Local liquor retailer Norman Goodfellows has acquired a substantial interest in Port2Port.wine, an online fine wine marketplace. Norman Goodfellows brings to the table its logistics network, warehousing capabilities, and a broad product range, particularly in spirits. Port2Port.wine will continue to operate as an independent brand under its current management team.
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Under business rescue since 2022, Baywest Mall in Nelson Mandela Bay and Hemingways Mall in Buffalo City have been acquired by Hangar 18. The properties acquired in September 2023 were each purchased for R1,3 billion.
7 March 2024
Exchange-Listed Companies
The RCL Foods board has given its preliminary approval for the unbundling and listing of Rainbow Chicken, a move first mooted some years ago. The move will allow the company to focus on its branded foods business.
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Lighthouse Properties, through its wholly-owned Spanish subsidiary, is to acquire the retail shopping centre known as Centro Commercial H2O, together with a vacant plot of land detached from H2O. The gross purchase consideration is €121 million which includes deferred capital expenditure of €10 million. Net of existing senior bank debt of €61,5 million, the purchase consideration will be funded from existing cash resources.
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Following last week’s ruling by SA’s Takeover Regulations Panel, French media company Canal+ has been granted an extension to 8 April to publish a firm intention announcement to acquire MultiChoice shares from minorities. The media company has upped its mandatory offer from R105 to R125 per share, valuing the company at R55,3 billion. The initial offer price was higher than that paid when it acquired the latest shares on market and tipped it over the 35% threshold, triggering a mandatory offer to minorities. Even so, the R105 offer was rejected by MultiChoice as significantly undervaluing the group whose net asset value sits at c. R181 a share.
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Hulamin has acquired the remaining stake in Isizinda Aluminium from joint venture partner Bingelela Capital. The primary activity of Isizinda is the management of properties. Prior to the transaction, Hulamin held a 38.7% stake.
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MC Mining has appealed to its shareholders not to accept the off-market takeover bid of A$1.16 per share by Goldway Capital Investment. The offer will remain open until 5 April 2024 unless it is extended or withdrawn by Goldway.
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The disinvestment by Gold Fields of its 45% effective interest in Asanko Gold Mine to Galiano Gold for gross proceeds of US$170m, has closed with all conditions precedent fulfilled on March 4, 2024. Goldfields received US$65 million in cash and 28,5 million shares in Galiano as upfront proceeds for the divestment. The remaining proceeds will be settled through deferred and contingent payments.
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Unlisted Companies
Last-mile delivery and express parcel services company The Courier Guy, has been acquired by private equity firm Adenia Partners alongside co-investors DEG, Proparco and South Suez. Financial details were undisclosed.
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The launch of a new, majority black owned venture capital fund, Conducive Capital, will invest in early- and growth-stage disruptive technologies. The fund aims to raise, in its first close in July 2024, US$15 million with a target final close of $50 million within 24 months.
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French energy giant TotalEnergies and Qatar’s state-owned oil company QatarEnergy have together acquired a majority stake in an exploration licence of Block 3B/4B in the Orange Basin, off South Africa’s west coast. TotalEnergies acquired a 33% participating interest while QatarEnergy has taken a 24% interest. The stakes were acquired from existing shareholders Africa Oil South Africa, Ricocure and Azinam.
29 February 2024
Exchange-Listed Companies
Capitalworks Private Equity has acquired The Building Company (TBCo) from Pepkor for R1,2 billion. Select members of TBCo’s management team are investing alongside the private equity company. The disposal will streamline Pepkor’s portfolio of businesses, while for TBCo the deal will position it strategically and operationally to pursue future growth.
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South32 has entered into an agreement with Golden Energy and Resources Pte and M Resource to dispose of Illawarra Metallurgical Coal. South32 will receive an upfront cash consideration of US$1,05 billion, a deferred cash consideration of $250 million and a contingent price-linked cash consideration of up to $350 million. The deal is in line with the company’s strategy to unlock value for shareholders.
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Sirius Real Estate is to acquire its third German business park this year for €13,75 million. The business park is situated in Klipphausen, near Dresden.
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Hammerson plc has disposed of Union Square, a 52,000m² shopping centre in Aberdeen, Scotland to US-headquartered Lone Star Real Estate Fund VI for £111 million in cash. The proceeds of the disposal will be used to strengthen the balance sheet. The sale of Union Square concludes the company’s £500 million non-core disposal programme initiated in early 2022.
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Kibo Energy has finally parted ways with the institutional investor-led consortium led by Proventure Holdings (UK) and announced a funding agreement with new strategic partner RiverFort Global Opportunities. The initial funding facility is up to £4 million. The funds will predominantly be used to fund the Pyebridge 9MW flexible power generation asset out of care and maintenance.
22 February 2024
Exchange-Listed Companies
Anglo American has agreed to acquire and integrate the contiguous Serra da Serpentina orebody owned by Vale SA into Anglo American’s Minas-Rio mine in Brazil. In terms of the transaction, Vale will contribute Serpentina and US$157,5 million in cash to acquire a 15% shareholding in the enlarged Minas-Rio and will have the option to acquire an additional 15% stake. Anglo American will continue to control, managed and operate the Minas-Rio operation, including any future expansions that relate to Serpentina.
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Unlisted Companies
Global multi-asset broker XS.com has acquired locally licensed financial services provider Ubutyebi Financial Services. The acquisition enables the FinTech and financial services provider to establish XS ZA, positioning XS.com as a strong player in the local market and providing a platform for expansion across the continent. Financial details of the deal were undisclosed.
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MCI, a global leader in business process outsourcing (BPO) and customer experience (CX) solutions, has acquired Cape Town-based BYC Aqua. The acquisition merges MCI’s innovative approach and BYC’s deep understanding of the region and substantial cloud offerings, including certain unique AI offerings.
15 February 2024
Exchange-Listed Companies
Yet another quiet week on SENS – but this, I am told by those advising on deals, is not a true reflection of the current level of M&A activity. Well, that is good news especially as the country’s elections loom larger.
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Transaction Capital has released further details of its proposed unbundling and listing of WeBuyCars (WBC). Prior to the listing, Transaction Capital plans to raise between R900 million and R1,25 billion by issuing shares in the second-hand car dealer. Shares will be issued to Coronation giving the asset manager an 11.3% stake at a cost of R760 million. New investors will be able to subscribe via a capital raising exercise of c.R750 million. This will reduce Transaction Capital’s stake from 74.9% to a range of between 57% and 67%. WBC’s founders’ shareholding will reduce from 25.1% to 10%. Proceeds from the various capital raising initiatives will be utilised by Transaction Capital for the settlement of debt at holding company level. The implementation date of the unbundling and listing is anticipated to occur during early April 2024.
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Sirius Real Estate has acquired a further two business parks in Germany. The parks, one in Köln and the other in Göppingen, have been acquired for a total cost of €40 million using proceeds from the €165 million capital raise.
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The Competition Commission has approved a deal which will see Sanlam’s private equity arm acquire Bacher, a distributor and wholesaler of high-quality brands such as Hugo Boss and Tommy Hilfinger.
8 February 2024
Exchange-Listed Companies
Last week was all about a possible takeover by Canal+ SA of MultiChoice, this week the buzz is about Mondi’s interest in smaller peer DS Smith. Mondi has confirmed that it is in the early stages of considering a possible all share combination with DS Smith which it notes “represents an exciting opportunity to create an industry leader in European paper-based sustainable packaging solutions”. This is not the first time Mondi has shown interest in the LSE-listed UK multinational packaging business, it did so previously in 2021. While no firm takeover proposal has been made, under UK takeover rules Mondi has until 7 March to make a firm offer or walk away.
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Interestingly the Takeover Regulation Panel has released a statement on SENS concerning the offer to MultiChoice minorities by Groupe Canal+ SA. Although the MultiChoice Board has rejected the offer and withdrawn its cautionary announcement, the Panel has advised shareholders to continue to exercise caution it is still engaging with the two parties.
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Lesaka Technologies (previously Net 1 UEPS Technologies) is to acquire Touchsides, a data analytics and insights and merchant services company, from Heineken International. The acquisition aligns with Lesaka’s strategy of adding scale and broadening its service offering in the Merchant division. As part of the deal, Heineken’s operating business in SA has agreed to a long-term contract with Touchsides for access to its tavern data and services.
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Sanlam’s offer to buyout minorities of CTSE-listed Assupol represents an offer price premium of 32%, at R15,23 per share, valuing the company at R6,5 billion. Assupol’s embedded value is R7,07 billion. Assupol’s major shareholders, Budvest (46.11%) and the International Finance Corporation, (19.36%) expressed and interest to exit the investment in early 2023. For Sanlam, Assupol represents a strong strategic fit and will enhance its position in the Retail Mass segment. Sanlam also announced that Sanlam Allianz Africa, its 60:40 joint venture with Allianz had completed a mandatory offer for Sanlam Maroc shares increasing its shareholding from 61.73% to 85.59% for a total consideration of R2,43bn.
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Old Mutual Alternative Investments, through its Hybrid Equity capability, has announced a R125 million preference share facility to Afropulse Group, a black women-owned investment holding company. The facility will facilitate a restructure of its funding which is supported by a 6.56% equity shareholding in Imperial Logistics.
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Announced in August 2023, the value of the investment by Mastercard into MTN Group Fintech has now been disclosed. Mastercard will invest up to US$200 million (c.R3,7billion) for a minority stake in the business at a valuation of $5,2 billion on a cash and debt-free basis.
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Sable Platinum Holdings (SPH), a subsidiary of Sable Exploration and Mining, has taken a 2.5% stake in the unincorporated joint venture (Dense Medium Separation beneficiation plant) from IPace, in exchange for additional funding of R1 million required in the plant. SPH has granted IPace an option to buy back the stake at R1,3 million which expires on 31 October 2024.
7 December 2023
Exchange-Listed Companies
Aspen Pharmacare has concluded two interdependent agreements with Swiss headquartered Sandoz. Aspen, via its subsidiary Aspen Global Incorporated (AGI), will acquire the Sandoz business in China for up to €92,6 million, with €18,5 million contingent on the sales performance of the Pipeline Products. In terms of the second transaction for which it will receive €55,5 million, AGI will dispose of the rights and IP of four anaesthetic products sold by Aspen in the European Economic Area. Of this, €9,3 million is contingent on sales performance. AGI will fund the net upfront cash consideration from existing debt facilities.
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Sanlam Investments Sustainable Infrastructure Fund (Sanlam) is to invest R46 million in the Mkomazi Alienfuel joint venture. The biomass-to-energy project, a joint venture with energy company Alien Fuel Group and Sappi, will provide crucial baseload renewable energy derived from biomass to Sappi’s dissolving pulp manufacturing plant in Umkomaas.
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Datatec has increased its equity stake in UK-based digital and technology consultancy Mason Advisory by 40% to 80%. The purchase consideration for the stake acquired from management was undisclosed but will be paid from existing cash resources.
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Accelerate Property Fund has disposed of Cherry Lane Shopping Centre in Pretoria to Alma Trading CC for R60 million. The proceeds will be used to reduce debt and reinvestment into its core property portfolio.
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In February Buka halted the acquisition of Caralli Leather Works and Socrati Footwear from B&B Media (a material shareholder in Buka) and Moltera Group following a request from B&B Media. B&B Media had acquired local shoe manufacturer Eddels Shoes during February 2023 and wanted sufficient time to thoroughly assess the synergies between the Socrati Group and Eddels. By placing the transaction on hold, Buka failed to comply with the JSE Listings Requirements for a cash shell and consequently Buka’s listing was suspended with effect from 24 February 2023. The company has been finalising a strategy to reverse viable assets into the Buka listed cash shell as required for the lifting of its suspension. The company announced this week that the final transaction is progressing, and shareholders will be updated with any progress.
30 November 2023
Exchange-Listed Companies
South Africa’s AltX-listed copper producer, Copper 360, has acquired Nama Copper from Mazule Resources in a deal valued at R200 million. Nama Copper is located adjacent to Copper 360’s operations in Nababeep. Its flotation plant is currently under care and maintenance.
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Hudaco Industries is to acquire the trading assets and liabilities of the Plastic-Weld business, an importer and stockist of plastic welding equipment, hot-air tools, specialised test and inspection equipment and thermos cutters. The purchase consideration of R56 million (maximum) will be funded from cash and existing facilities.
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A consortium led by ACN Capital (its founder is current CEO and acting CFO of Ascendis Health) has made an offer to minorities to acquire their Ascendis Health shares for a cash consideration of 80c per share. The offer price represents a premium of 25% to the 30-day volume weighted average price as at 26 September 2023, the day prior to the release of the initial cautionary. The delisting of the company will give the consortium the opportunity to continue with its restructure, optimise and grow the remaining businesses and exit those that are considered mature which will realise value for those shareholders who opt to remain in an unlisted company.
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African Rainbow Minerals (ARM) has concluded an agreement with Norilsk Nickel Africa to acquire the remaining 50% participation interest in its joint venture that operates the Nkomati Mine. The mine is currently under care and maintenance. ARM will take over the environmental liabilities of the mine together with Norilsk’s proportionate share of the obligations and liabilities relating to the assets, with a R325 million contribution from Norilsk. For ARM the benefits of the transaction include the known and predictable nickel sulphide orebody and the bi-metal product credits which include copper, cobalt, platinum, palladium and chrome.
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Delta Property Fund has entered into an agreement with Goldview Africa to dispose of its property known as the Smartxchange, situated at 5 Walnut Road in Durban for R46 million. This follows the failed deal with Ubud Development in May this year in which the parties could not reach agreement on the terms of the sale.
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Unlisted Companies
Local fleet management startup GoMetro has raised US$11,5 million in a Series A round. The capital will serve as a catalyst for GoMetro’s mission to digitise heavy duty commercial transport operations and further develop its EV fleet management platform in the key markets of UK, US and South Africa. The round was led by ZenobÄ“ Energy with participation from new backers Futuregrowth Asset Management, ESquared Ventures and Kalon Venture Partners and existing investors Decades Capital, Hlayisani Capital and Tritech Global.
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Global logistics provider Dachser has acquired the remaining 30% stake in Dachser South Africa from the founding Duve family. Dachser first entered SA with a joint venture, taking a majority stake in the family-owned company Jonen Freight. The company offers air, sea and road logistics. Financial details were undisclosed.
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British International Investment (BII) has announced a R125 million investment in two 140MW wind farms in South Africa’s Northern and Eastern Cape. Currently under construction, the two wind farms are expected to reach completion in 2024. This is part of a three-project cluster co-developed by H1 Capital and EDF Renewables.
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EnviroServ has acquired the remaining 50% stake in Vissershok Waste Management Facility, a waste treatment and disposal facility in Cape Town. Financial details were undisclosed.
24 November 2023
Exchange-Listed Companies
PPC’s wholly-owned subsidiary PPC International is to dispose of its 51% stake in CIMERWA (Rwanda) for US$42,5 million. CIMERWA, which is listed on the Rwanda Stock Exchange, will be purchased by a privately-owned company, National Cement Holdings, which is part of the Devki group, one of the largest manufacturers of clinker and cement in East Africa.
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Burstone Group (formerly Investec Property Fund) has, via its newly formed Australian joint venture with Irongate Group, acquired its first industrial property in New South Wales, Australia for A$57,25 million. The Irongate joint venture will provide the 20% co-investment equity, alongside APAC-focused private equity real estate investment group Phoenix Property Investors (80%), and the fund management capabilities for the deal.
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Delta Property Fund has entered into an agreement with Slip Knot Investments to dispose of a property at the corner of CJ Langenhoven Drive and Cape Road in Gqeberha for R33 million. The disposal is part of Delta’s ongoing strategy to dispose of non-strategic assets. The proceeds will be used to reduce debt and the Loan to Value (LTV) by 0.2% from 61.4%.
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Unlisted Companies
Payments24, a South African global payments platform provider specialising in payment and loyalty solutions in the digital and fuel payment ecosystem, has invested in Inergy 24, a Swiss-headquartered European-based technology service provider. The two businesses collectively will provide customers throughout Europe access to the Pay24 platform including fleet management, loyalty and rewards, mobile, retail and electric vehicle payments and Cloud Switch solutions.
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24 Bit Games, a Unity focused technical game development studio based in Johannesburg, has been acquired by Annapurna, an American video game publisher and developer. The companies have worked together for many years and this next chapter will enable 24 Bit Games to grow its development team and existing technology toolkits for its client base and future projects.
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Kgodiso Development Fund, an independent fund founded by PepsiCo South Africa, has invested into agri-tech digital platform Khula! The platform enables small and medium-sized agricultural enterprises, commercial farmers and distributors to participate in the agricultural value chain. The undisclosed investment will be used by Khula! to develop innovative ways to sustainably finance emerging farmers.
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The asset management firm Anchor Capital is to merge with London-based boutique wealth manager Credo. The combined entity will have assets under management of R230 billion with Anchor shareholders owning 80% of the combined entity.
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Springs Car Wholesalers (SCW Group) has acquired the SANI Car Rental brand and will operate as franchisees under the brand in South Africa and Namibia. Financial details were undisclosed.
16 November 2023
Exchange-Listed Companies
Having failed to persuade Teck Resources’ minority shareholders earlier this year, to merge the Teck operations with that of Glencore’s, Glencore has reached an agreement with Teck to acquire a 77% stake in its steelmaking coal business Elk Valley Resources (EVR) for US$5,93 billion in cash, on a cash free debt free basis. Nippon Steel Corporation will hold a 20% stake in EVR and POSCO the remaining 3% – both of whom have existing relationships with Glencore. The company remains committed to the demerge of the combined businesses, believing that a standalone company containing its combined coal and carbon steel materials business, including its stake in EVR, would attract strong investor demand given its yield potential.
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Absa’s Mauritius subsidiary has reached an agreement to acquire the domestic Wealth and Personal and Business Banking business of The Hongkong and Shanghai Banking Corporation (HSBC) in Mauritius. Financial details were undisclosed.
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Deneb Investments is to dispose of the property situated at 34 Kinghall Avenue, Epping in Cape Town to Gerber Advisory Specialists for R64,35 million. The property is not considered core to Deneb’s strategy.
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Unlisted Companies
Pineapple, the local digital insurance provider, has announced the conclusion of a R400 million funding round. The round was led by new investors, Futuregrowth, Talent10 and Mineworkers Investment Company while the business received additional investment support from existing investors including Old Mutal ESD, Lireas Holdings, ASISA ESD Fund and E4E Africa. Pineapple’s technology allows it to service customers at 20% of the cost of traditional insurance providers.
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Local proptech startup Neighbourgood has acquired Cape-based traveltech startup Local Knowledge in a move expected to transform the travel and hospitality experience. The deal will combine Neighbourgood’s 1000-plus living and working spaces with the Local Knowledge’s ability to provide the next-gen with unforgettable travel experiences via its technology.
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Convergence Partners has increased its stake in African broadband infrastructure company CSquared through the acquisition of the stake held by Google. In addition, the pan-African impact investment management firm took part in CSquared’s US$25 million equity capital raise.
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ASX-listed Vanadium Resources (VR8) has increased its interest in Steelpoortdrift by 4.59% to 86.49% through the completion of a transaction with Math-Pin, its BEE party. The acquisition is payable via a combination of R2,930 in cash and 8,092,810 share options to acquire VR8 shares, which will on exercise, represent 1.48% of the issued share capital of VR8.
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Private Equity fund managers 1K Africa and Ascension Capital, have announced an investment in South Africa’s payment profile hosting credit bureau, Consumer Profile Bureau (CPB). The undisclosed investment will be used to help CPB scale its market position and services including its unique technology for tracing, credit verification and debtor profiling.
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UK global sports media business LiveScore Group has increased its stake in Wonderlabz, a Cape-based software development and talent hub, from 25% to 100%.
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UK headquartered online trading services provider ATFX, has acquired Khwezi Financial Services, a South Africa over-the-counter derivative provider. Financial details were undisclosed.
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Liquid Intelligent Technology has received R900 million in funding from the IFC and Rand Merchant Bank to be used to scale affordable broadband access in the Eastern Cape Fibre Project.
9 November 2023
Exchange-Listed Companies
Alexander Forbes and OUTsurance have concluded a binding agreement which will see Alexander Forbes acquire 100% of the shares in OUTvest, a digital wealth platform. The platform integrates automated advice, human advice, administration, and asset management into a digital wealth solution. The disposal by OUTsurance follows a strategic review of OUTvest and the resultant decision to consider a restructuring due to the sub-scale nature of the business. Financial details were undisclosed as the acquisition falls below the threshold for categorisation.
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Sibanye-Stillwater is to acquire US-based metals recycler the Reldan Group for a cash consideration of US$155,4 million. With its platform and technology capable of processing a variety of waste streams, the acquisition of Reldan enhances Sibanye’s exposure to the circular economy. The deal is expected to be value accretive, positively contributing to Sibanye’s earning and cash flow from day one.
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Clientèle has announced it is to merge its business with that of 1Life, an insurer specialising in funeral and underwritten life insurance products. Clientèle will settle the R1,91 billion acquisition price by way of an issue of shares. The consideration shares (117,815,756 translating into a 26% equity stake) will be issued at R16.25 per share which includes a control premium of 6.23%. The acquisition is accretive, resulting in a combined Embedded Value of c.R7,8 billion and almost 1,5 million contracts.
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NEXT176, a venture capital business backed by Old Mutual, has announced a R27 million investment in JOBJACK, a South African tech startup offering a recruitment registration platform for entry-level job seekers. NEXT176 led the R45 million pre-Series A funding round. The funding will be used to scale the business by expanding its network of employers and job seekers nationwide.
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Sirius Real Estate has disposed of an industrial park in Maintal, in the German region of Hesse for €40,1 million. The disposal represents a net initial yield of 5.7%. In addition, via its BizSpace subsidiary, Sirius has exchanged and completed the acquisition of a £33,5 million portfolio of three assets located in North London from a closed ended fund.
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Unlisted Companies
Legacy Africa Capital Partners (LACP), through its LACP Fund I, has acquired a significant minority stake in Welltec, a local financial wellness technology company and provider for responsible credit solutions for consumers. Founded in 2016, Welltec’s digital Credit Gateway platform offers personalised, actionable guidance for consumers. To date, Welltec in collaboration with partners that license its technology services, has restructured some R1 billion worth of credit for over 170,000 consumers.
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Twelve years after being acquired by Dimension Data, SYNAQ, South Africa’s cloud-based email security services, has been bought back by its co-founder David Jacobson. Financial details were undisclosed.
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Inclusivity Solutions, a Cape Town-based insurtech startup has raised US$1,5 million in a Series A extension round. Impact investor Goodwell Investments led the round, having backed Inclusivity Solutions in previous fund raises. The insurtech which delivers embedded insurance solutions, will use the investment to scale its expansion plans into at least 12 African markets by end 2024. It will also continue to invest in its no-code, open API platform which enables distribution partners and insurers to offer a full range of insurance products in a matter of hours.
2 November 2023
Exchange-Listed Companies
Woolworths has announced its intention to acquire 93.45% of the shares in Absolute Pets from Sanlam Private Equity and Absolute Pets management. The remaining management-retained shareholding will be acquired by Woolworths over an agreed period post the completion of the transaction. While financial details were not disclosed as the deal value falls below the threshold for categorisation in terms of the JSE Listing requirements, the company did report that the purchase consideration would be settled in cash.
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In September Senosi Group Investment and Dendocept, each substantial shareholders in MC Mining (23.4% and 6.9% respectively) made a confidential and incomplete, non-binding conditional and indicative offer to acquire the shares of the company for a cash offer in the range of A$0.20 – A$0.23 per share. The company this week received a letter signalling an intention to make an off-market cash takeover offer for the remaining shares in the company by the consortium comprising Senosi, Dendocept and shareholders and associates representing an aggregate 64.5% of the issued share capital of the company. The letter however did not provide a definitive offer price for the shares.
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OUTsurance Holdings, an 89.7% owned subsidiary of OUTsurance Group, has acquired a further 2.64% stake in Australian insurance operation Youi from former CEO and founder of Youi for A$42,5 million. In March, the company acquired an initial 54,6 million shares. OUTsurance’s stake in Youi now sits at 94.64%.
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Sibanye-Stillwater has exercised the option (due to expire on 5 November 2023) to acquire the Mt Lyell copper mine in Tasmania. Sibanye gained the option through its 2021 acquisition of New Century Resources. The mining group paid $10 million to Vedanta for the copper mine which was placed on care and maintenance in 2014. A feasibility study will be conducted to consider the re-establishment of the operation. Sibanye also announced the closing of its acquisition, from joint venture partner Anglo American Platinum, of the 50% stake in Kroondal and Marikana pool-and-share agreement, announced in early 2022.
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The proposed R60 million disposal by Trustco of a 49% stake in Trustco Finance Namibia to Finbond has been terminated. The parties have, without giving reasons, agreed not to continue with the transaction but have indicated that they may revisit the deal in the future.
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Unlisted Companies
Bushveld Minerals, the AIM-listed vanadium producer and energy storage solutions provider with vanadium mines and processing facilities in South Africa, has entered into a conditional agreement to acquire the remaining 26% stake in Bushveld Vametco. The minority stake is held by a BEE consortium which will receive 232,836,255 million Bushveld Mineral shares for the stake representing 13% of its enlarged share capital. 70% of the consideration shares will be subject to a six-month lock-in period.
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Hollard International, SA’s largest privately-owned insurance group, has entered into an agreement to acquire a significant stake in Apollo Investments, the holding company APA Insurance which is headquartered in Kenya. Financial details of the deal were undisclosed. Hollard has an existing presence in the following African countries – Namibia, Mozambique, Zambia, Lesotho, Botswana and Ghana.
26 October 2023
The week was very quiet on the mergers and acquisitions front.
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Exchange-Listed Companies
Alternative investment firm New York-based Stonepeak has made an offer to Textainer shareholders to acquire 100% of the company at US$50.00 per ordinary share. The cash offer has been approved by the Textainer Board and represents a premium of 46% over the closing share price on October 20, 2023. The deal is valued at $2,1 billion. The transaction, which represents an enterprise value of c.$7,4 billion, is expected to close in the first quarter of 2024.
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Famous Brands disclosed in its financial statements this week that it had acquired with effect from October 16, 2023, an interest in Munch Software. The business is a recent entrant to the Point-of-Sale software industry, offering a cloud-based platform. The new partnership will enable Famous Brands to achieve its ambitions to digitise the restaurant management technology ecosystem.
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RMB Corvest (FirstRand) has, in partnership with Shalamuka Capital, acquired a 30% stake in Switch Telecom, a VoIP telecommunications service provider. Financial details were undisclosed.
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Unlisted Companies
Aviapartner, a leading Airport Ground Services group in Europe, has entered into a joint venture with South African company Nas Colossal Aviation Services (NCAS). Aviapartner will hold a 51% stake in the joint venture with NCAS owning the remainder. NCAS employees some 2,400 people and operates at six South African airports of which Johannesburg and Cape Town, respectively are the first and third largest airport on the African continent. Its customer portfolio includes airlines such as Airlink, British Airways, Emirates, Ethiopian Airlines, Lufthansa and South African Airways. Financial details of the transaction were not disclosed.
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19 October 2023
Exchange-Listed Companies
BHP along with its joint venture partner Mitsubishi Development, are to disinvest from the Australian Blackwater and Daunia mines. Two wholly owned subsidiaries of Whitehaven Coal will acquire the mines for a cash consideration of up to US$4,1 billion. Completion of the transaction is expected to occur in the June 2024 quarter.
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Omnia has taken a minority stake in Swedish-based Hypex Bio Explosive Technology. Omnia sees the deal as a strategic partnership; one that will enhance the ongoing development and commercial rollout of Hypex’s HP emulsion technology in key markets and will provide BME, Omnia’s provider of blasting solutions subsidiary, with access to state-of-the-art technology. Financial details were undisclosed.
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Hyprop Investments has concluded a sale agreement to acquire Table Bay Mall for R1,6 billion. The company notes that an additional R23,3 million will be paid in respect of the cost of the solar panels currently being installed at the mall – a sign of our times. The addition of this asset to its portfolio is consistent with the company’s strategy to increase its exposure to the Western Cape. The acquisition is classified as a category 2 transaction, so shareholder approval is not required.
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In another property transaction announced this week Accelerate Property Fund has disposed of two office properties in the Eastgate area – Pri-movie Park situated at 185 Katherine Street and 1 Charles Crescent. The purchaser, Micawber 832, will pay a combined R117 million. Accelerate shareholders are not required to approve this transaction.
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Concert parties African Equity Empowerment Investments (AEEI) and Sekunjalo Investment Holdings (SIH) have made an offer to AEEI shareholders to acquire their shares for R1.15 per share. The offer price is a 28% premium on the share price of R0.90 prior to the announcement. The offer is for a maximum 144,336,812 shares (SIH holds a 70.6% stake in AEEI which is excluded from the offer) for a maximum offer consideration of c.R166 million. At the time of the announcement 47.27% of shares held by eligible shareholders had undertaken to vote in favour of the delisting resolution.
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Following a strategic review of its businesses against a backdrop of the current economic, political and competitive landscape, Sasfin has announced the disposal of its Capital Equipment Finance and Commercial Property Finance businesses to African Bank for an aggregate consideration of c. R3,26 billion. Post the transaction, Sasfin will retain its Wealth, Rental Finance and focused Banking businesses which it aims to strengthen and scale.
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Boland Rugby has announced a transformative equity partnership with Stellenbosch Academy of Sport, a subsidiary of Remgro, and a consortium comprising companies controlled by the Motsepe family. Remgro and African Rainbow Capital Investments will each own a 37% of the Boland Rugby Union – with the union retaining the remaining 26%.
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Deneb Investments via its subsidiary Sargas, has disposed of properties considered non-core to its growth strategy. The properties, situated at 40 Leicester Road, Mobeni West in Durban, are to be sold to Groforce Investments for a cash consideration of R65 million. The disposal consideration will be used to settle outstanding debt.
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Unlisted Companies
The Hollard Group, a mass-market life insurance company, has announced a strategic investment in SA-based insurtech, Simply Financial Services, a registered FSP and insurance software developer. The undisclosed investment by Hollard will enable the insurance disruptor to scale the business and target a larger pool of individuals and businesses.
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Licensed open-access fibre infrastructure provider, Frogfoot Networks, has acquired Garden Route Networks and Route Networks as it expands its connectivity capabilities in parts of South Africa’s coastal region. Financial details were not disclosed.
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Global financial services provider Apex Group has announced the sale by its BEE partner Ditikeni Trust of a minority stake in the South African subsidiary Apex Fund Services to a B-BBEE consortium. The stake has been sold to a consortium led by Ntiso Investment Holdings and Akhona Group. Financial details were undisclosed. In addition, Apex announced the successful close of the acquisition of Boutique Collective Investments (BCI) and Boutique Investment Partners (BIP). BCI is a collective investments scheme manager with a core business focus on third-party branded portfolios while BIP is an independent investment management and consulting firm providing multi-manager and consulting services to South African independent financial advisers and their retail and institutional clients.
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Belgium headquartered P95, a provider of clinical and observational services to vaccine developers, is to merge with local clinical research organisation OnQ Research. Post the transaction P95-OnQ will have a physical presence in 30 countries with offices in Europe, Latin America, Asia and Africa with services covering both regulatory-grade real-world evidence and full-service interventional clinical trial research.
South African owner and operator of serviced last-mile logistic parks, Inospace, has acquired a landmark A-grade industrial facility in Paarden Eiland from the liquidators of shipbuilder Nautic Africa. The vacant property was purchased at a rate of R8,900/m² and has a gross lettable area of 8,400m² under a 22-metre-high roof.
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Knife Capital, the Cape-based venture capital investment manager, has led a Series A funding round by Outsized. The talent-on-demand platform enables large enterprise clients and consulting firms in Asia-Pacific, Africa and the Middle East to implement flexible workforce models.
12 October 2023
Exchange-Listed Companies
MiX Telematics and US-based Powerfleet have announced their intention to combine their businesses. MiX shareholders will be offered 0.12762 new Powerfleet shares for every 1 MiX share held. Following implementation of the deal, Mix shares will be delisted from the JSE and the MiX American Depository Shares will be delisted from the NYSE. Powerfleet will take a secondary inward listing on the JSE, retaining its primary listing on Nasdaq.
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Following the September announcement that Nikkel Trading 392 has made a mandatory offer to Brikor shareholders to acquire their shares at 17 cents per share, the company announced this week that Nikkel had acquired additional shares in Brikor, taking its effective shareholding from 64.11% to 68.01%.
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The Competition Tribunal has prohibited Sasol’s proposed sale of its sodium cyanide business to Czech Republic’s Draslovka. The deal was originally announced in July 2021. In November of 2021 the Competition Commission prohibited the merger on grounds that, amongst others, it would likely result in a substantial prevention or lessening of competition due to post-merger price increases which would be detrimental to customers ie gold mining firms. A number of mining firms had been granted leave to participate in the Tribunal proceedings following their applications for intervention.
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Futuregrowth Asset Management (Old Mutual) and Galloprovincialis have invested in logistics software platform Tripplo. The US$1,8m equity investment closes out the firm’s seed funding extension round.
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Unlisted Companies
Private equity firm Harith General Partners has agreed to acquire a 46% stake in Mergence Investment Managers. Shandura, a wholly-women owned firm, will also acquire a 5% stake as part of the deal. Financial terms were not disclosed.
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Adenia Partners has completed a majority investment in Enfin Energy Finance, a rooftop solar financing company for commercial and industrial clients. This is its first investment from the Adenia V fund. Financial terms of the investment were not disclosed.
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Textile manufacturing group Ivili Group has secured a US$5m investment from gender focused investment fund Alitheia IDF. The Ivili Group is comprised of Ivili Loboya, a wool and cashmere processing facility in Butterworth in the Eastern Cape and Ivilitex, a garment manufacturing factory in Cape Town.
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AI-driven customer service solutions startup, Cue, has raised US$500,000. The company did not disclose who the investors were but stated that the funding will be used to accelerate their product offering following rapid growth in the UK over the last year.
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Ecentric Payments Solutions has acquired fellow fintech operator, Thumbzup. Financial terms were not disclosed. The Thumbzup IP, devices and technology will be fully integrated into Ecentric operations.
5 October 2023
Exchange-Listed Companies
Life Healthcare (LHC) has entered into binding agreements with entities advised by iCON Infrastructure for the sale of Alliance Medical Group for a cash consideration of £593 million (R13,88 billion). The deal excludes LHC’s interests in Life Molecular Imaging Limited, Life Molecular Imaging GmbH and Life Molecular Imaging (LMI). The company intends to return the majority of the net proceeds to shareholders by way of a special dividend. Post completion, LHC will be positioned as a diversified and integrated healthcare services provider with strong growth potential in southern Africa through its integrated care model and international growth potential through LMI’s radiopharmaceutical portfolio.
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In a bid to simplify the company’s dual share capital structure into a single class of ordinary shares Fortress Real Estate Investments has made an offer to acquire the remaining issued Fortress B shares in exchange for NEPI Rockcastle shares. In terms of the scheme, Fortress will repurchase all FFB shares in issue (with the exception of the FFB shares held as treasury shares, which will be cancelled). FFB shareholders will receive the 0.060207 NEPI Rockcastle shares per FFB share, resulting in 56,683,619 NEPI Rockcastle shares currently held by Fortress being used as consideration. FFA shares in issue will be converted into FFB shares. The Company has received non-binding letters of support for the Scheme from the shareholders holding 40.7% of the FFA shares and 51.9% of the FFB shares. The Scheme will have the effect of removing the current impediment which prohibited the Board from declaring dividends.
Renewable energy-focused development company Kibo Energy has, as part of its declared strategy to divest from all hydrocarbon and coal-based assets, entered into an agreement to dispose of its coal interest in Botswana. While Kibo will indeed dispose of its remaining 35% stake in Kibo Energy to Shumba Energy for US$375,000, the consideration is payable by means of ordinary shares in BSE-listed Shumba which is itself a coal and energy development company. Loss making Kibo Energy Botswana consists of the Mabasekwa Coal to Power Project.
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Telemedia, a subsidiary of Rex Trueform, has entered into an agreement with two parties, The Three Basset Holdings and Saalbach, to acquire a 35% stake in Interactive Television Africa. ITV Africa is an automated sports coverage company providing broadcasts and streaming services of school sports in South Africa. Telemedia will pay R18 million in cash for the stake.
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Sirius Real Estate has disposed of a business park in Kassel, Germany for €7,3 million, representing a net initial yield of 6.0%.
Delta Property Fund has announced two disposals of properties in Bloemfontein in keeping with the decision to exit certain regions. The property known as Sediba & Fountain which is situated at the corner of Markgraff and Zastroon streets, is to be sold to Coffee Shop At Tyres for R19,1 million. For a cash consideration of R7 million Delta is to dispose of the property known as the VLU building to Dimatone. The two properties are located adjacent to each other.
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Conduit Capital has agreed to sell back its 30% stake in OracleMed Investments to OracleMed Holdings for R9 million. The stake was acquired in June 2021 by subsidiary Constantia Risk and Insurance for R42 million.
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The date for the fulfilment of conditions precedent for Finbond’s acquisition of a 49% stake in Trustco Finance Namibia has been extended once again, this time to 1 November 2023.
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Surgical Innovations, a wholly owned subsidiary of Ascendis Health which commenced voluntary business rescue proceedings in May 2023, has advised shareholders that it has successfully exited the business rescue process.
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Unlisted Companies
Africa-focused mining and investment company Marula Mining plc through its wholly owned subsidiary Marula Lithium Mining South Africa, has entered into an agreement with Opencast Resources (ORL) and Future Gems (FGL). In terms of the agreement, Marula Lithium Mining will secure a 70% interest in FGL from ORL, the holder of the Korridor 21 Prospecting Right in the Northern Cape. The region is known for its high-grade pegmatite deposits. The acquisition will be satisfied by way of an initial consideration of £125,000 in Marula shares along with a cash payment of up to US$50,000 with subsequent share-based payments subject to completion of key milestones.
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Pretoria headquartered intellectual property service provider Hahn & Hahn, which operates across the continent, has sold a majority stake to private equity Gulf Capital’s portfolio company CWB Group.
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Data solutions providers Edge DataWave (Edge Evolve Group) and Master Data Management have formed a strategic partnership in Edge Master Data. The joint venture aims to empower businesses across industries to make informed decisions, optimise efficiency and accelerate growth. Financial details were undisclosed.
Airports Company South Africa has reconsidered its decision to sell its 20% equity ownership in Aeroporto de Guarulhos Participações (GRUPAR) given the strong recovery of Sao Paulo’s Guarulhos International Airport from the negative impact of COVID-19. GRUPAR is the holder of 51% of Concessionária do Aeroporto Internacional de Guarulhos.
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RWS, a UK-based provider of technology-enabled language, content and intellectual property services, has acquired STComms Language Specialists. The Cape Town-based language services provider covers a wide range of industries, working with a large network of skilled linguistic professionals across 26 African countries.
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Property Solutions Africa (PSA), a multi-disciplined real estate advisory firm in South Africa, has been acquired by global flexible office specialist, The Instant Group. The acquisition will enable The Instant Group to expand its footprint across the continent.
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South African fintech Stitch, which provides an end-to-end payments solution which enables businesses to build, optimise and scale financial products thereby improving the conversion for online payments, has raised US$25 million in a Series A extension round led by Ribbit Capital. Existing backers, PayPal Ventures, the Raba Partnership and CRE Ventures, also participated in the round.
28 September 2023
Exchange-Listed Companies
RMB (FirstRand) via its Family Office Group Solutions business, has acquired a 20% stake in Genfin Holdings for an undisclosed sum. Genfin’s subsidiaries include Genfin Business Finance, which delivers alternative lending solutions for SMEs and Kanga Finance, a developmental credit provider. The equity investment and bespoke debt funding solution will be used to provide further growth capital to its subsidiaries.
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African Infrastructure Investment Managers (Old Mutual) is to double its equity commitment to NOA Group having first invested $90 million (R1,6 billion) into the vertically integrated energy platform in November 2022. NOA aims to develop, finance and operate a portfolio exceeding 2.5 GW of renewable energy assets over time.
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Invenfin, the venture capital arm of Remgro, has made a further investment of US$1,5 million in Root. Founded in SA in 2016, Root offers a low-code platform that empowers modern digital insurance products designed for direct, affinity, and embedded distribution at scale. The end-to-end insurance platform helps companies sell digital insurance products in Africa, the UK and in Europe. Funds will be used to accelerate its expansion plans in Europe and the UK.
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Singapore-based Grindrod Shipping, 83% owned by Taylor Maritime Investments Ltd, a subsidiary Grindrod Shipping Pte Ltd, has entered into two agreements to acquire Taylor Maritime Management from Taylor Maritime Group and to buy Tamar Ship Management from Taylor Maritime Group and Temeraire Holding. Under the terms of the transaction, Grindrod Shipping Pte Ltd and Island View Ship Management Pte Ltd have agreed to acquire the companies for c.US$11,75 million with a maximum value not exceeding $13,5 million. The transaction will be financed via a combination of cash and the allotment of new Grindrod Shipping shares. The acquisition is subject to certain conditions and is expected to close before mid-October.
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An agreement to settle the dispute between African Equity Empowerment Investments (AEEI) and BT Communications Services South Africa (BTSA) has finally been reached and AEEI will dispose of its 30% stake in BTSA for R290 million. The stake was sold in 2008 by BT Group plc (BT) for R27 million to AEEI as its BEE shareholder with BT holding an option to repurchase the stake upon the occurrence of certain events. In 2021 a dispute arose over the call option which has been the subject matter of an arbitration ever since. AEEI has “taken the decision to preserve shareholder value by unlocking cash reserves for growth and to limit further advisory and legal costs”.
Equites Property Fund subsidiary, Equites International, has disposed of a property currently let to Tesco Distribution, located on Dodwells Road in Hinckley, UK to Relif UK IB.V. The purchaser, part of the Realterm Europe Logistics Income Fund, will acquire the property for a purchase consideration of £29,75 million. The transaction is a category 2 transaction and so does not require approval by shareholders.
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Currently in business rescue, Rebosis Property Fund is to dispose of a further four office properties to Katleho Property Investments for an aggregate consideration of R160 million. The properties were valued at R291 million in April 2023. The beneficial shareholder of Katleho is Heriot Investments.
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Unlisted Companies
Red Rocket, an independent power producer established in 2012, has received a capital injection of US$160 million from management shareholders vehicle, Bill Kilgore Investments and an international consortium of clean energy investors comprising Inspired Evolution, STOA and FMO, the Dutch entrepreneurial development bank.
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The Cape-based payment orchestration platform Revio has raised US$5,2 million in a seed investment round. Fintech fund QED Investors led the round with participation from Partech and existing investors Speedinvest, RaliCap and Everywhere VC. The startup helps merchants optimise their order to cash lifecycle. Funds will be used to scale Revio’s coverage across the continent and expand its capabilities to add value for customers.
21 September 2023
Exchange-Listed Companies
In a bid to double its facilities management operations in Australia, Bidvest has acquired Consolidated Property Services (CPS) for an undisclosed sum from private shareholders. CPS provides integrated property services to more than 145 sites across Victoria, New South Wales and South Australia. With current management having signed services agreements the company says the deal will be earnings and return accretive to Bidvest.
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Zeder Investments subsidiary Zeder Financial Services, which holds a 92.98% stake in the Capespan Group, is to dispose of Capespan excluding its pome fruit primary production operations and the Novo fruit packhouse. The acquirer, 3 Sisters, is a special purpose acquisition vehicle owned and funded by Agrarius Agri Value Chain, which is administered and driven by 27four Investment Managers. Zeder will receive R511,39 million for its stake while minority shareholders will receive R38,6 million for a 7.02% interest. As part of the disposal, Zeder will conclude a strategic relationship with Capespan in respect of the marketing and distribution of Pomme Farming Unit’s crops.
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The mandatory offer of R6.41 per enX share by African Phoenix Investments to minority shareholders closed on 15 September 2023 with acceptances in respect of 0.27% (495,846) of the company’s issued share capital. African Phoenix now holds a 49.07% stake in enX.
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Mondi plc has entered into an agreement to sell its last remaining facility in Russia to Moscow-based real estate development company Sezar Group. In August 2022 the company announced the sale of Mondi Syktyvkar to UK’s Augmented Investments for a purchase consideration of €1,5 billion. However, the deal failed in June this year due to “lack of progress” in gaining the necessary approvals to complete the transaction. Sezar will pay a total cash consideration RUB80 billion (c. €775 million/R15,7 billion). Mondi intends to distribute the net proceeds from the disposal to shareholders.
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OUTsurance has exercised an option to acquire, for A$42,5 million (R518,5 million), the remaining 2.65% stake in Youi held W Roos, a member of the team which started Youi in 2008. The company acquired the first 2.65% stake in March this year for A$36 million.
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Telemedia, a subsidiary of Rex Trueform, has entered into two agreements to acquire properties. The Telelet portfolio, consisting of eight properties, will be acquired for R50 million and the acquisition of 27 Landau Terrace in Melville, a related party acquisition from the Bretherick Family Trust, for R1,5 million.
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AngloGold Ashanti has agreed to sell its 50% indirect interest in the Gramalote Project in Columbia to Canadian miner B2Gold for a total consideration of up to $60 million (R1,1 billion). AngloGold Ashanti will receive a cash payment of $20 million at the transaction close with the balance dependent on project construction and production milestones. The Gramalote project is a joint venture between the two companies.
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Unlisted Companies
Saint-Gobain Construction Products South Africa, the subsidiary of the French headquartered leader in light and sustainable construction, is proposing to acquire local specialist epoxy, polyurethane flooring and construction solutions company Technical Finishes SA. Financial details were undisclosed – the deal is pending regulatory approval.
14 September 2023
Another week packed with company results and only a handful of acquisition announcements.
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SA Exchange-Listed Companies
As per Brikor’s announcement last week Nikkel Trading 392 (NT392) acquired from major shareholders an aggregate 64.11% stake in Brikor in two tranches at 17 cents per share, triggering a mandatory offer to minorities. NT392 has offered to acquire the remaining 193,6 million shares (excluding Brikor’s CEO’s c.13% stake) for an aggregate R32,9 million.
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Momentum Metropolitan announced in its financial results for 2023 that it had concluded a sale agreement with OUTsurance in terms of which the company will acquire OUTsurance’s stake in RMI Investment Managers. The acquisition will enable Momentum to increase its asset management market participation significantly.
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Unlisted Companies
Ascension Private Equity Fund I has acquired a 45% stake in Paul’s Muesli for an undisclosed sum. In addition to being a manufacturer of muesli, granola and cereal bars, Paul’s Muesli sources, imports and supplies a wide range of oats and dried fruit, seeds and nuts to the retail and wholesale breakfast cereal market.
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German chemical and ingredients distributor Brenntag is to acquire the operating business of Chemgrit Group, headquarter in Johannesburg. Chemgrit is an independent specialty chemical distributor with a focus on personal care, food and material science. The enlarged Brenntag Specialties business in South Africa will be scaled to other African markets, adding to Brenntag’s current African presence with local entities in Maghreb, Ghana, Nigeria, East Africa, Mauritius and SA. Financial details were undisclosed.
7 September 2023
Exchange-Listed Companies
British American Tobacco plc has announced the disposal of its Russian and Belarusian businesses to a consortium led by members of the Russian management team for an undisclosed sum. The company announced in March 2022 that the ownership of these businesses was no longer sustainable in the current environment. Post completion, the businesses will be known as the ITMS Group.
The sale of assets held by Rebosis, currently under business rescue, continues with the announced sale of a portfolio of 10 properties to Hemipac Investments for R650 million.
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Oando plc has reached an agreement with Eni to acquire 100% of the shares in Nigerian Agip Oil Company. The transaction increases Oando’s current participating interests in OMLs 60 to 63 from 20% to 40%.
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In March this year Brikor advised shareholders that Nikkel Trading 392 intended to acquire from major shareholders a 67.7% stake in Brikor in two tranches at 17 cents per share. The first tranche, representing a 34.1% stake, was acquired at the time of the announcement. The second tranche (33.6% stake) was conditional on several suspensive conditions, including regulatory approval from the Competition Authorities, the JSE and the TRP. Brikor has now advised that it will acquire the second tranche which will trigger a mandatory offer to minorities.
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Unlisted Companies
Cipla Medpro South Africa is to acquire Actor Pharma in a deal valued at R900 million, according to a filing by its Indian holding company. The deal is a strategic move by the South African subsidiary to strengthen its position in the over-the-counter segment of the market, unlock future growth opportunities and leverage cost synergies in the SA market.
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Real estate private equity platform Kasada, has acquired the former Radisson Blu Hotel & Residence situated in the Cape Town city center for an undisclosed sum. Kasada has a presence in eight African countries with a portfolio of 19 hotels.
31 August 2023
Exchange-Listed Companies
Aspen Pharmacare has concluded an agreement with Eli Lilly Export, a subsidiary of US pharmaceutical company Eli Lilly and Company. In terms of the agreement, Aspen will distribute and promote Eli Lilly’s products in South Africa and in certain other sub-Saharan African countries for an initial term of 10 years, automatically renewable for two further periods of five years. Aspen will pay US$41,5 million for the distribution rights.
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Subdued demand for metal can products manufactured at Nampak’s Nigerian operation resulted in its closure from 31 July 2023. Nampak has since entered into an agreement to dispose of the Nigeria Metals property and equipment to Associated British Foods’ subsidiary Twinings Ovaltine Nigeria for NGN7,5 billion (c.R180 million).
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In a move to internalise its asset management function, Delta Property Fund will acquire Delta Property Asset Management from the DPAM Employee Benefit Trust. The purchase consideration of R1000 will be settled by the issue of 7,692 shares to the Trust.
Sebata has acquired Valley View Industrial Park in New Germany, KZN from Reunert for R32 million. The acquisition is a Category 2 transaction and as such does not need shareholder approval.
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Unlisted Companies
UEM Sunrise, a Malaysian property developer will divest from the South African market with the disposal of an 80.4% stake in Roc-Union, a provider of real estate services, to Azishe Properties for R118,4 million. The disposal is in line with the company’s turnaround strategic plan to realign its operations geographically and redirect resources to businesses and areas which offer greater potential.
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South African on-line subscription platform Rentoza has raised US$6 million in funding from Alitheia IDF and Vumela Enterprise Development Fund. Rentoza dematerialises ownership of technology devices and appliances for consumers and is South Africa’s first pure play subscription model for digital goods and appliances, providing an affordable, accessible and flexible e-commerce ecosystem. The investment will be used to scale the technology enabled platform and business regionally.
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InsureTech platform LeaseSurance, has raised R3 million in a seed funding round led by Fedgroup Private Capital. The platform offers lease insurance to SA’s residential operators and asset owners, reducing the administrative burden by replacing cash deposits with affordable monthly fees and so lowering bad debts. The capital injection will be used to enhance its insurance offering by further developing its technology solutions for the industry.
17 August 2023
Exchange-Listed Companies
Along with the release of its interim results, MTN announced it had signed a memorandum of understanding with Mastercard. Following a bespoke process to identify and potentially introduce strategic minority investors into the US$5,2 billion (enterprise value) MTN Group Fintech business, the company will, following the completion of the due diligence exercise, close a deal with Mastercard.
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RMB Corvest (FirstRand) in partnership with Umoya Capital Partners, has acquired a significant minority stake in SANTS Private Higher Education Institution. Programmes offered by SANTS focus on quality at an appropriate cost, with an emphasis on ease of access and customer service for potential educators. Since its establishment in 1997, SANTS has presented various programmes and qualifications to more than 40,000 educators in South Africa.
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The R8 billion BEE deal announced by Sanlam in October 2018 with SU BEE Investment SPV for a 5% stake (111,349,000 new shares) in the company is being unwound. The shares were issued at the time at R70 per share representing a 9.88% discount – the share has traded for the most part below this level thanks to the pandemic and economic fragility of the country. The deal funded via a combination of preference shares and external funding is unlikely to provide the beneficiaries with any benefit and as such Sanlam has taken the decision to unwind the deal. The company will acquire the preference shares held by Standard Bank (the external funder) and secured by 85 million Sanlam shares for R2,4 billion, funded from existing cash resources.
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Unlisted Companies
Sylvania Platinum, a low-cost PGMs producer listed on the London Stock Exchange’s Alternative Investment Market, has announced a joint venture (JV) in SA between its local unit and Limberg Mining, a subsidiary of ChromTech Mining. The JV will process PGM and chrome ores from historical tailings dumps and current arisings from the Limberg Chrome mine in the Western Limb of the Bushveld Complex. The JV will trade and operate under the name Thaba Joint Venture. Sylvania will initially fund the R600 million start-up costs and will provide c.US$5 million in the form of a loan for working capital.
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Vitruvian Medical Diagnostics, a medical technology startup developing low-cost diagnostic assistance tools for medical laboratories, has raised US$1,25 million in a recent Seed Extension II funding round. The round was led by 27four Investment Managers’ social impact fund the Nebula Fund. The investment will be used to scale growth by increasing the team and driving growth in new technologies.
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Air Products South Africa, via its subsidiary Weldamax, has added to its gas and welding portfolio with the acquisition of a controlling interest in EWN&S. The acquisition will add a further four sales outlets to the existing 13 countrywide outlets. Financial details were undisclosed.
10 August 2023
Exchange-Listed Companies
Capital & Regional is to acquire The Gyle Shopping Centre in Edinburgh, Scotland for a total acquisition consideration of £40 million. The acquisition will be financed through existing funds held by the company, a new debt facility of £16 million and c. £25 million from proceeds to be received from a fully underwritten (by Growthpoint) capital raise. The capital raise is being implemented by way of an open offer of 46,278,681 open offer shares. The issue price of 54 pence/R13,03 per share represents 4 open offer shares for every 15 existing ordinary shares. Approximately £1,6 million of the proceeds will be used to pay fees and expenses incurred in connection with the proposed transactions.
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STANLIB Asset Management (Standard Bank) through its Infrastructure Fund II, has acquired a controlling interest in renewable energy solutions specialist Solareff and its subsidiary, GridCars. Solareff is a commercial and industrial solar and battery platform with over 500 projects to date and a total of over 190MW of installed capacity. GridCars is the owner, operator, and supplier of charge-network infrastructure with related network software for South Africa electric vehicles. Financial details were undisclosed.
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PPC has concluded an equity transaction with a newly formed PPC Employee Share Ownership Trust which has acquired 10% of PPC South Africa for a purchase consideration of R380 million. All employees not currently participating in PPC’s long-term incentive programme will be eligible and participation will be weighted in favour of the historically disadvantaged. The company will provide the Trust with a loan of R380 million which will be repaid from 75% of the dividends that it will receive from it shareholding in PPC SA, with the remaining 25% distributed to the beneficiaries.
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Remgro and Vodacom have advised that the Competition Commission has recommended to the Competition Tribunal to prohibit the proposed acquisition by Vodacom of a 30% interest in Maziv. The deal, first announced in November 2021, proposed that Maziv, a newly formed entity, would house the assets owned by Community Investment Ventures which included Vumatel and Dark Fibre Africa as well as certain fibre assets of Vodacom.
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Unlisted Companies
Fledge Capital, a local private equity firm, has invested an undisclosed sum in Luxury Time, an online business selling high-end watches at discounted prices. The new investment will be used to scale its inventory and enhance its online presence and customer service capabilities.
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FinMeUp, a community-based platform dedicated to fostering a collaborative environment and offering a range of solutions including financial advisory, investments, insurance and credit solutions, has raised an undisclosed sum. The funding round was led by SAAD and Blue Sky Investments. The startup will use the funds to scale operations and enhance its user experience.
3 August 2023
Exchange-Listed Companies
Aspen Pharmacare, via its subsidiary Aspen Global Incorporated (AGI), is to acquire the commercialisation rights and related intellectual property for a portfolio of branded products in Latin America. Acquired from NASDAQ-listed Viatris, the key products are sold under the brand names Lipitor, Viagra, Lyrica, Zoloft, Norvasc and Celebrex. The fair value of the products has been determined by AGI as $280 million (R5 billion). AGI will settle the consideration by means of a combination of a cash payment of $150 million and an extension of the supply terms to Viatris.
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Prosus has announced that PayU has reached an agreement with Rapyd, a leading Fintech-as-a-Service provider, whereby Rapyd will acquire PayU’s Global Payments Organisation (GPO) for a total cash consideration of US$610 million (R11,2 billion). GPO operates in some 30 countries across Asia, Latin America, Europe and Africa but the deal excludes India, the biggest payments market, as well as its units in Turkey and Indonesia. The transaction will enable PayU to focus on the large payments and fintech opportunity in India, where it is the leading payments provider. For Rapyd the transaction will allow it to significantly scale and market its presence in Central and Eastern Europe and Latin America, while also gaining access to relevant underlying licenses and payment processing infrastructure.
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Glencore is to acquire the remaining 56.25% stake in Minera Agua Rica Alumbrera (MARA) Project from Canadian miner Pan American Silver – a stake it inherited when it acquired Yamana Gold earlier this year. Under the terms of the agreement Glencore will pay $475 million (R8,4 billion) in cash for the stake and grant Pan American a copper Net Smelter Return royalty of 0.75%. Glencore acquired Newmont’s 18.75% stake in MARA in October 2022, increasing its stake to 43.75%. The transaction is expected to be completed in Q3 2023.
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Delta Property Fund has advised that it has cancelled the agreement with DMFT Property Developers relating to the Capital Towers disposal announced in December 2022. The reason given is that DMFT has failed to deliver the requisite bank guarantee or balance of the cash consideration required to transfer the leasehold property. Not surprising then that the agreement announced in April in respect of the sale to DMFT of Delta’s four regional properties has also been terminated.
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Unlisted Companies
Local alternative investment manager, Westbrooke Alternative Asset Management, has closed its inaugural R300 million tax-enhanced renewable energy alternatives fund, Westbrooke REAL. The fund will offer fast, innovative and flexible equity funding to solar partners to expedite project rollouts.
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Black women-owned and managed Ditiro Capital, a South African private equity fund manager, has reached its first close securing R360 million in investment commitments from Thuso Partners, the Motor Industry Retirement Funds and the Telkom Retirement Fund. Ditro is targeting capital commitments of between R500 million and R800 million.
27 July 2023
Liberty Group (LGL), a subsidiary of Standard Bank, has announced its intention to acquire the remaining shares not already held in Liberty Two Degrees (L2D). L2D shareholders have been offered a cash consideration of R5.55 per share in a deal worth c.R1,9 billion. The share price closed 44% up on the day. Coronation Asset Management and Sesfikile Capital have confirmed that they will support the scheme and together they represent 64.4% of the shares that may vote.
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Spur Corporation, in a move to strengthen its position in the day-time speciality dining space and enter the coffee speciality market, has acquired a 60% stake in the Doppio Group. The stake was acquired from founders Paul Christie and Miki Milovanovic. While financial details of the transaction were undisclosed, it was disclosed in the announcement that the Doppio Group generated total sales of over R600 million in the financial year ended February 2023.
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Trustco aims to raise c.US$75 million which will be used to complete the Meya Mining development. Sterling Global Trading (SGT) will subscribe for shares valued at $25 million and will hold a 70% stake in Meya Mining. Trustco Resources will reduce its shareholding to 19.5% and Germinate SL will own a 10.5% stake. SGT will advance a $25 million loan and will work with Meya Mining to raise a further $25 million. The funds will ensure that Meya is fully capitalised and will enable the mine to scale production at an accelerated pace.
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Labat Africa has acquired the remaining 30% stake in CannAfrica from H Maasdorp for a consideration of R6,43 million to be settled through the issue of 29,9 million Labat shares and the balance in cash of R2,8 million.
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A preferred strategic equity partner (SEP) has been selected for Tongaat Hulett, currently in Business Rescue. The selected SEP is Kagera Sugar, a sugar manufacturing company situated in the North-Western part of Tanzania. The transaction will comprise the acquisition of the complete sugar division of Tongaat Hulett in South Africa and the investments in Zimbabwe, Mozambique and Botswana. Financial details were undisclosed.
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Sirius Real Estate, through its UK subsidiary BizSpace, has acquired a portfolio of two mixed use industrial assets located in Liverpool and Barnsley. The assets have a combined area of 71,957 square feet of predominantly workshop accommodation. Sirius acquired the portfolio for £9,5 million representing a net initial yield of 9.6%.
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The offer in Q4 2021 by Impala Platinum (Implats) to Royal Bafokeng Platinum (RBPlat) shareholders finally closed this week with RBPlat shareholders holding 121,437,384 shares (96.21% of shares not held by Implats at the time of the offer) accepting the offer. In aggregate Implats now holds 98.35% and will invoke section 124(4) of the Companies Act to compulsorily acquire all the RBPlat shares not already held. Application will be made for the termination of the listing of the RBPlat shares on the JSE which will become a wholly-owned subsidiary of Implats.
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ArcelorMittal South Africa is proposing to modify its existing 2016 B-BBEE transaction which, according to the company’s announcement, has not yielded the envisaged value for the empowerment partners and employees. The modified transaction will see the BEE parties (Amandla We Nsimbi, Likamva Resources and the Isabelo 2 Share Trust) holding a 21.75% direct stake in the company. The transaction is subject to shareholder approval and will require the issue of a circular setting out the full terms and conditions of the transaction.
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Unlisted Companies
Five35 Ventures a Johannesburg-based pan-African female-focused venture capital fund investing in early-stage tech start-ups, has made an undisclosed investment in Zuri Health. The Kenyan startup provides customers with affordable, convenient and quality healthcare services via its app, SMS and WhatsApp. Zuri Health’s services are available in Ghana, Nigeria, Senegal, South Africa, Uganda, Tanzania and Zambia.
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Kasha Global, a Kenyan women-led and focused healthcare retail platform has raised US$21 million in a Series B round led by Cape Town-based Knife Capital. Kasha sells and delivers pharmaceutical products, household goods and consumer health products to low-income consumers, resellers, pharmacies and health facilities in East Africa.
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The Competition Tribunal has conditionally approved the acquisition of a 51% stake in SAA by Takatso Aviation. SAA entered business rescue in December 2019. In terms of the deal, Takatso’s major shareholder Harith has raised R3 billion which it will commit to SAA. The Department of Public Enterprises will continue to hold the remaining 49% stake in the airline.
20 July 2023
There was not much happening in the local M&A space this week – all eyes were on the SARB governor Lesetja Kganyago as to whether he would hike interest rates further. The sigh of relief was palpable with the governor announcing on Thursday to keep the repro rate unchanged at 8.25% and prime at 11.75%. He did add however that this may not be the end of the hiking cycle, but would reassess the data at each meeting going forward.
Exchange-Listed Companies
Super Group, through its UK subsidiary, SG International Holdings, has acquired a 78.82% stake in UK transport and logistics business CBW Group (t/a Amco) from management for a cash consideration of £30,3 million. Amco delivers its logistics services to 250 active UK and European customers operating in a diverse range of manufacturing sectors. The deal will significantly enhance Super Group’s supply chain offering providing opportunities for market share gains across the UK and Europe.
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Northam Platinum (Northam) advised shareholders this week that it had submitted its acceptance of the Impala Platinum (Implats) mandatory offer to acquire its 34.5% stake in Royal Bafokeng Platinum (RBPlat). The protracted struggle for control of RBPlat began in November 2021. Northam will receive R9 billion and 30,065,866 Implats shares (a 3.3% stake) valued at c. R4,1 billion. In a market statement, Northam said the disposal provided a well-timed opportunity for the company to secure a significant cash injection which would materially strengthen its balance sheet and liquidity position at a time when prevailing PGM market conditions and the decline in the PGM basket price may signal a potentially protracted cyclical downturn.
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Unlisted Companies
RSM South Africa is to merge with local accounting services firm Ngubane Johannesburg. The combined business will operate under the RSM South African brand. Financial details were undisclosed.
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Transnet announced International Container Terminal Services Inc., a Philippines-headquartered company, as the preferred bidder for the 25-year joint venture to develop and manage the Durban Container Terminal Pier 2.
13 July 2023
Exchange-Listed Companies
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Choppies Enterprises has acquired a 76% controlling stake in the Kamoso Africa, an industrial group whose businesses include milling, the import of value for money food, the distribution of medical equipment, the manufacturing of tissue and plastics, the retail of building material and the sale of liquor. It is, according to the company, the well-established and dominant liquor business that is behind the rational for the acquisition. Choppies Botswana is the only one of the four countries in which Choppies is present that does not have a liquor business. Choppies will pay R2.00 for the business and take cession of the existing shareholders loans of P28 million.
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Mondi plc is to acquire the 250,000 tonne per annum Hinton Pulp mill in Alberta, Canada. Mondi will pay West Fraser Timber Co. US$5 million for the mill and enter into a long-term partnership with West Fraser to access local, high-quality fibre from a well-established wood basket.
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Invicta announced two deals during the week. The company acquired through its wholly owned subsidiary KMP, a 50% stake in KMP Far East Pte, a company established in Singapore with the primary objective to promote and strengthen market coverage of the KMP Brand. In a second transaction, executed via its subsidiary Euro Driveshaft, which forms part of its Replacement Part Auto-Agri business segment, Invicta acquired Imexpart, a UK distributor of truck parts. Financial details were undisclosed.
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Unlisted Companies
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Magnora ASA and Globeleq have signed and executed an agreement that paves the way for developing large-scale battery storage and renewable energy projects in South Africa. Globeleq, which is 70% owned by British International Investments and 30% by Norfund, will acquire a permitted site from Magnora and will develop the project further. The agreement provides for an upfront payment with additional payments on condition Globeleq reaches certain commercial and technical milestones. Magnora entered the SA renewable energy market in 2021 with the acquisition of an 850 MW project portfolio and went on to acquire African Green Ventures, a renewable project development company.
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Africa Oil, a Canadian oil and gas company listed on the TSX, is to acquire a 6.25% interest in Block 3B/4B – an area of 17,581 km² within the Orange Basin offshore South Africa. The stake is to be acquired from Azinam, a wholly-owned subsidiary of Eco (Atlantic Oil & Gas) for US$10,5 million.
6 July 2023
Exchange-Listed Companies
AVI subsidiary Irvin & Johnson has announced a new B-BBEE transaction following the maturation on 1 July 2023 of its 2004 deal with Main Street 198. In terms of the new deal, Twincitiesworld, a 100% black-owned company will acquire 18.75% of the issued share capital in Irvin & Johnson. I&J employees currently own 6.25%. Following the transaction, 25% of the issued share capital of I&J will be owned by previously disadvantaged shareholders. The new deal is not a categorised transaction in terms of the Listing Requirements of the JSE.
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In February, Attacq informed the market that it was in discussions to dispose of a 30% stake in Attacq Waterfall Investment Company (AWIC) to the Government Employees Pension Fund (GEPF) represented by the Public Investment Corporation. This week the company announced it had concluded binding agreements and would, following shareholder approval, implement the transaction in exchange for R2,388 billion in cash. In addition, the GEPF will inject a further R300 million into AWIC as a shareholder loan. Attacq will retain control of AWIC and continue to provide asset management and administration services to AWIC at market-related fees.
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Following the implementation of the Distell transaction in April 2023 and further subsequent off-market transactions, Remgro has informed shareholders that its final shareholding position in Heineken Beverages and Capevin is 18.80% and 55.93% respectively.
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De Beers, 85% held by Anglo American, has negotiated a new 10-year diamond sales agreement with the Botswana government. Previously De Beers kept 75% of the diamonds mined through Debswana, a joint venture held equally with the state. Under the terms of the new agreement, Botswana will receive 30% of diamonds mined from the four mines, increasing to a maximum of 50% in the next decade. The parties have also agreed to extend the mining licenses (up for renewal in 2029) for a further 25 years to 2054.
29 June 2023
Exchange-Listed Companies
Eenhede Konsultante, the majority shareholder (57.64%) in Advanced Health has made a firm intention to make an offer to acquire all the issued shares of the company other than those held by the VC Family Trust, the Carl Grillenberger Family Trust and Pres Medical Witbank, for an offer consideration of 80 cents per Advanced Health share. Prior to the announcement, the shares were trading at 40 cents per share, 50% of the offer price. Since listing in 2014, the company has struggled to attract significant institutional interest and as a result management says it difficult to justify the costs associated with being listed on the JSE.
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Pick n Pay Stores has announced an acquisition to enhance the Group’s fresh meat offering to customers. The R340 million acquisition of Tomis group of companies includes a state-of-the-art abattoir and meat processing and packaging business, situated near Wellington, which supplies lamb, beef and other quality fresh meat products to wholesalers and retailers. The purchase consideration will be split with an upfront cash consideration of R323 million payable and the remaining R17 million on the third anniversary of the deal.
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Castleview Property Fund has, through its wholly-owned subsidiary Interurban Willowbridge (RF), signed an agreement with Mirlem IP to dispose of the Makhaza Shopping Centre. The centre, situated in Khayelitsha will be sold for a cash consideration of R140 million. The deal is a related party transaction as the beneficial owners of Mirlem also form part of the beneficial ownership of I Group Investments, a material shareholder in Castleview.
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In a cost cutting exercise, Cognition, a subsidiary of Caxton and CTP Publishers and Printers, is to dispose of its Ferndale property known as Cognition House to Luma for R11,87 million. The company’s infrastructure is hosted within the Caxton facilities and as a result current Johannesburg employees will be accommodated in the Caxton building.
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Unlisted Companies
Rainbow Rare Earths, an LSE-listed mining company focused on producing the separated rare earth oxides required to drive the green energy transition, is to acquire an 85% stake in the joint venture that holds the rights to Phalaborwa rare earth project in Limpopo. This updates the original co-development agreement which envisaged Rainbow earning a 70% interest. Rainbow will pay Bosveld US$5 million in cash. Under the agreement, Rainbow has been granted a call option to acquire the remaining 15% of the joint venture held by Bosveld in return for US$17 million of equity in the company.
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Huaxin Cement, a Chinese, Hong Kong-listed company, is to acquire the Africa-based business of InterCement in a deal which includes the assets in Mozambique and South Africa. The transaction value is estimated at US$231,6 million based on an enterprise value of $265 million.
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Blue Sky Publications has acquired website SAPeople, a site for South Africans abroad looking for local news, advice and content.
22 June 2023
Exchange-Listed Companies
Growthpoint intends to ask shareholders to vote on the issue of 20 million shares (0.6%) to the company’s flagship corporate social investment initiative, the CSI Trust, to further increase its B-BBEE credentials. The shares, currently held as treasury shares by subsidiary Growthpoint Management Services, would be sold to the Trust at R12.50 per share, financed by way of a loan in the amount of R250 million. According to the company, the Trust would become a valuable source of perpetual funding for Growthpoint’s social impact projects. Aside from shareholder approval the scheme also needs sanction from the B-BBEE Commission.
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Following a cautionary announcement earlier this month, Afrimat has now announced the acquisition of Lafarge South Africa from Holcim Group subsidiary Caricement. The acquisition has been structured as a locked box transaction with effect from 31 December 2022 for US$6 million payable in cash. In addition, Afrimat will repay shareholder loans of R900 million with R500 million payable immediately and the rest over a 12-month period. The acquisition will expand Afrimat’s current national footprint and products, driving efficiencies in the construction materials segment.
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Sasol and long-term strategic partner Topsoe, a Danish decarbonisation technology company, intend to establish a 50/50 Joint Venture to develop sustainable aviation fuel solutions (SAF). The JV will develop, build, own and operate ventures producing SAF based on Sasol’s Fischer Tropsch technology and Topsoe’s relevant SAF technologies.
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FirstRand’s corporate and investment bank, RMB, has partnered with Sturdee Energy to help grow the business in the southern African renewables energy sector. The equity funding will give the business the ability to further build out its immediate pipeline of 175MW and position it to deliver flexible power purchase agreements.
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Unlisted Companies
Zoie Health, a digital health platform using technology to provide holistic healthcare benefits, has closed a pre-seed extension funding round. The round was led by 4DX Ventures with participation from impact investor E Squared Investments. With the funding, Zoie Health plans to grow Africa’s first digital women’s health clinic by increasing the product offering and scaling to new regions on the continent.
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Actis, the UK-headquartered global investment firm focused on the private equity, energy, infrastructure, and real estate asset classes, has agreed to sell BTE Renewables to Engie and Meridiam for a total enterprise value of US$1 billion. BTE Renewables is a local renewable energy company, with an operating portfolio of nearly 500 MW of wind and solar PV projects in South Africa and Kenya. In terms of the deal, Engie will acquire the SA portfolio and team while Meridiam will acquire the Kenyan portfolio and team.
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Solar energy asset financier Yellow has raised US$14 million in series B funding to scale its operations in Africa in a round led by Convergence Partners. The investment will be used to leverage more debt finance to expand its customer base offering finance for smartphones and solar systems.
14 June 2023
Exchange-Listed Companies
Glencore is to dispose of its 50% stake in virtually integrated business, Viterra, which is focused on the global agricultural product value chain. Viterra is to be merged with Bunge, a company connecting farmers to consumers to deliver food, feed and fuel globally. The deal is expected to realise significant value to Glencore. Under the terms of the agreement, Glencore will receive c.$3,1 billion in Bunge stock (32,8 million shares, representing 15% in the combined group) and $1 billion in cash.
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Glencore (take three). The company continues in its quest to implement a deal with Teck Resources with the company proposing an alternative offer to acquire the steelmaking coal business Elkview Resources (EVR). While the financial details of a proposed transaction were not disclosed, the latest proposal provides a middle ground for both companies – an exit for Teck Resources from the coal business and the option for Glencore to split its business into CoalCo and MetalsCo. Glencore’s first prize remains a merge with Teck Resources and a demerge of the coal business, having offered $8,2 billion to Teck shareholders who did not want exposure to the coal business.
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Telkom has, it is reported, rejected the latest offer from the Maseko-led consortium with the Business Times reporting that the consortium had offered R46 per share for a controlling stake. Management has requested that the consortium provide further clarity on several matters including the proposed offer price and certainty of funding.
8 June 2023
Exchange-Listed Companies
Investec Bank plc has increased its shareholding in the Capitalmind Group to 60% having first acquired 30% of continental Europe’s independent M&A corporate finance firm in 2021. Capitalmind’s partners will retain 40% of the group which will trade as Capitalmind Investec. Together, Capitalmind and Investec have 129 advisory practitioners based in Europe. Over the 24 months to March 2023, Capitalmind and Investec in aggregate advised clients globally on 230 transactions with a total value of over €25 billion. Financial details of the deal were undisclosed.
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Trustco, the Namibian-based financial services group is to dispose of a 49% stake in Trustco Finance to Finbond for R60 million payable in cash. The business provides both short- and long-term student loans. For Finbond the acquisition represents a reasonably inexpensive way to diversify its earnings stream and offers the opportunity to grow its online offering in Namibia.
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In March 2023, a scheme of arrangement was proposed by SA Corporate Real Estate in March to acquire the entire issued share capital of Indluplace. All resolutions required to be passed by Indluplace shareholders to approve the scheme were passed by the requisite majority of shareholders. Shareholders were offered R3.40 per share in a deal valued at R1,14 billion.
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The proposed sale announced in August 2022 by Mondi of Syktyvkar, its facility in Russia, has been terminated. Augment Investments, an investment vehicle comprising assets in the pharmaceutical and other sectors across Russia, Europe and the UK, was to acquire Syktyvkar for €1,5billion but has failed to make meaningful progress in gaining the necessary approvals to complete the transaction. Mondi remains committed to divest in the facility and will continue, it says, to assess all alternative divestment options. The proposed disposal of the group’s three Russian packaging converting operations to Gotek announced in December 2022 remains in progress.
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Unlisted Companies
Kuehne+Nagel, a Swiss-based logistics provider is to acquire Johannesburg-headquartered Morgan Cargo. The local freight forwarder specialises in the transport and handling of perishable goods with a presence in SA, UK and Kenya. Financial details of the deal were undisclosed.
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Oakland Polymers, a company registered to LHL Engineering and Richsteel Investments, has acquired the DyStar manufacturing facility in Pietermaritzburg.
1 June 2023
Exchange-Listed Companies
Impala Platinum (Implats) has finally managed to acquire enough shares to push its shareholding in Royal Bafokeng Platinum (RBPlats) beyond 50%. The sale by the Public Investment Corporation (SOC) of its 9.26% stake in RBPlats as per the scheme terms announced in November 2021, has increased Implats’ aggregate stake to 55.46%. The company will now facilitate increased broad-based ownership at both Impala and RBPlat through its wholly-owned subsidiary Royal Bafokeng Resources. The transaction will comprise the creation of a community share ownership trust across both companies holding 4%, as well as an option to replace the RBPlat employee share ownership plan (4%) and the introduction of a strategic empowerment partner Siyanda Resources (5%) which will lead a broad-based empowerment consortium. In addition, a further 3% will be warehoused for entrepreneurs, with a focus on women and youth entrepreneurs, from the Rustenburg community.
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The MultiChoice Group, Rapyd and General Catalyst have announced a joint venture aimed at developing an integrated payment platform for Africa. The joint venture will operate under a new name ‘Moment’. The JV will consolidate the US$3,5 billion in payments that the MultiChoice Group processes annually and will address the need for an accessible and reliable payment platform for many small businesses and consumers across the continent.
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Agriculture company Crookes Brothers which has local operations in KZN, Mpumalanga, the Western Cape and in Eswatini, Zambia and Mozambique, is to dispose of the business Vyeboom Fruit Farm to Western Cape-based fruit farming business Witzenberg Properties. This deal includes the business names Vyeboom, Ou Werf and Dennebos. The aggregate transaction value is R200 million. The company said it had initiated processes to sell certain farming properties that were not generating returns commensurate with its targets. Funds realised would be used to reduce its financial gearing and assist in completing its other diversification projects.
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Hudaco Industries has acquired Brigit, a local company offering fire protection solutions through the businesses of Brigit Fire, Brigit Systems and Portagas. The business provides an ideal fit for Hudaco which focuses on supplying quality, branded products and services which with significant value-add for the consumer. The maximum consideration is R315 million which will be funded from cash generation and existing facilities. An initial amount of R143 million will be paid with the remaining due, in cash, over the following two years.
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Primeserv, via its subsidiary Primeserv Pinnacle, is to acquire Pinnacle Outsource Solutions and AJR Enterprises CC – businesses that supply temporary employment services. The R10,95 million acquisition forms part of Primeserv’s strategy to expand its footprint in the temporary services sector of the Logistics, Transportation and Distribution Centre industry.
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Viterra, a Canadian grain and oilseeds marketer and handler, 50%-owned by Glencore, is said to be in talks to merge with US oilseeds processor Bunge, in a move which, according to Glencore, would unlock value from Viterra.
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Delta Property Fund has disposed of the property at 5 Walnut Road, Durban to UBUD Development for a cash consideration of R46 million. The net proceeds will be utilised by the company to reduce debt and the Loan to Value by 0.2% from 58.2% and reduce vacancy levels by 0.3% from 33.9%.
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Bloomberg reported earlier this week that the Public Investment Corporation may back a possible bid by investment vehicle Afrifund and Mauritius-based Axian Telecom for a 35% stake in Telkom SA. This comes a week after the state-controlled telecommunications company’s share price fell as much as 30% after the company warned it was considering writing down the value of its assets by about R13 billion.
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Unlisted Companies
Pioneer Foods which was bought out and delisted by PepsiCo in 2019, is to acquire the remaining 50% stake in Future Life health products following the initial 50% acquired in 2015. The stake will be acquired for an undisclosed sum from Future Life founder Paul Saad.
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Heineken Beverages of South Africa has, according to a filing by Nigerian Breweries Plc to its shareholders, offered to sell its majority interest (via Distell International) in Distell Wines & Spirits Nigeria Ltd to Nigerian Breweries. The outcome of the brewers’ decision will be communicated to shareholders in due course.
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South African ISP, Level-7 Internet, has acquired connectivity service provider Fliber. With the strategic acquisition, Level-7 Internet will leverage its expertise and resources together with Fliber’s strong community support to drive further growth and deliver enhanced services to customers.
25 May 2023
Exchange-Listed Companies
Life Healthcare is to acquire renal dialysis clinics in southern Africa of German dialysis specialist Fresenius Medical Care. The 51 clinics located in Namibia, Eswatini and South Africa will become part of Life Healthcare’s renal care programme.
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With the liquidation of Conduit Capital’s largest insurance business, Constantia Insurance Company, the Group does not have the scale and capital to grow its remaining insurance businesses. For this reason, Conduit Capital is to dispose of Constantia Risk and Insurance to TMM for an aggregate cash price of R55 million. Part of the disposal payment will be kept in escrow to cover sales claims against Constantia Life should they arise.
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The offer by Community Holdings to Jasco Electronics’ minority shareholders has been accepted in respect of 70,097,576 Jasco shares representing 19.08% of the total shares in issue, increasing the equity stake to 74.42%. The shares were acquired for a consideration of 16 cents per Jasco ordinary share, representing a 4% premium on the 30-day weighted average traded price of Jasco shares on 2 December 2022, the trading day preceding announcement. The delisting of Jasco was terminated this week on 23 May 2023.
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Nampak has disposed of the property in Dar es Salaam which housed its Tanzanian manufacturing business prior to being wound down and closed. The property was sold to Canda (T) Investment Company for US$5,55 million.
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Unlisted Companies
Edtech startup Play Sense, has secured an undisclosed funding from Grindstone Ventures. The preschool offers play-based learning through its micro-schools online platform. The funds will be used to enhance its franchise model and accelerate growth.
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TSX-listed Dye & Durham, one of the world’s largest providers of cloud-based legal practice management software, has acquired Cape Town-headquartered GhostPractice in a deal in which the financial terms were undisclosed. GhostPractice is the largest provider of legal practice management software in South Africa and also serves law firms in Canada.
18 May 2023
Exchange-Listed Companies
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Kibo Energy subsidiary, Mast Energy Developments (MED), has concluded a Heads of Terms agreement with regards to a joint venture with a new institutional investor-led consortium. Under the agreement, the institutional investor will inject all the required investment capital into the JV with an expected total of £33,6 million with no funding contribution required from MED which will provide the required projects into the JV. The projects, a portfolio of gas peaker plants with a combined generation output of c. 50 MW to be developed and/or acquired, are expected to be income generating within the next 12 months.
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Dis-Chem Pharmacies is to acquire a 63,000m³ distribution centre in Gauteng for a purchase consideration of R502 million. The acquisition will increase its warehouse space by 75%.
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Bayobab (MTN) and Africa50, an infrastructure investment platform headquartered in Morocco, have signed a partnership agreement to develop Project East2West, a terrestrial fibre optic cable network connecting the eastern shores of Africa to those on the continent’s west. The partnership will invest up to US$320 million connecting ten African countries over the next three years. The project will offer substantial improvements in data traffic for internet services providers, mobile network operators and hyperscalers operating in the affected countries. It is expected to cut latency by up to 65% on the east-to-west route.
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In November 2021 Vodacom and Community Investment Ventures (57%-held by Remgro) announced a deal in terms of which Vodacom disposed of its FTTH and FTTB assets plus transmission assets into a new vehicle InfraCo holding CIVH assets including Vumatel and Dark Fibre Africa. Vodacom has a 30% stake in InfraCo which has since been renamed Maziv. The transaction’s longstop date has been extended to 30 November 2023. The deal remains subject to the approval of the SA competition authorities. The 180-day period within which Vodacom is entitled to exercise the VC Call option to increase its stake by a further 10% will expire on 30 September 2023.
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Unlisted Companies
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Draslovak a.s., a global leader in cyanide-based chemical specialities and agricultural chemicals, has acquired South African-based Blue Cube Systems for an undisclosed amount. Blue Cube develops, builds and sells real-time mineral analysers for application in mineral beneficiation processes.
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Digital technology specialist e4 has been acquired by a consortium of private equity investors led by private equity fund manager Infinite Partners and including diversified financial services group, 27four. Financial details were undisclosed.
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Port443, a South African cybersecurity startup, has secured undisclosed funding from investment firm Iziko2.0 with supporting funding from RMB Ventures. The investment will be used to expand Port433’s footprint into the Middle East and Africa region.
11 May 2023
Exchange-Listed Companies
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Following the April announcement by the Takeover Regulation Panel on its findings into the investigation into companies including African Phoenix Investments and the settlement reached, African Phoenix Investments has made a mandatory offer to all shareholders of R6.41 per share for the remaining 51.2% stake (excludes concert parties) in enX. Shareholders holding 19.6% of the total shares in issue (again excluding concert parties) have provided irrevocable undertakings not to accept the offer. The offer price reflects a discount of R0.06 (0.877%) to the 30-day volume weighted average price of the enX share prior to the announcement.
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Absa has acquired a minority stake in Khula! a local agri-tech startup founded in 2016. The app’s platform connects farmers to the retail, wholesale and export markets creating an ecosystem to address challenges across the agricultural value chain.
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Through its subsidiary Alexander Forbes Financial Services, Alexander Forbes has concluded a binding agreement with TSA Administration to acquire a 60% stake in the risk insurance administrator for an undisclosed sum. TSA will operate as an independently managed unit within the group and Alexander Forbes has the option to acquire the remaining 40% of TSA over a period of five years. The purchase consideration will be settled in cash.
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Steinhoff International is to dispose of its 50.1% stake (an economic interest of 45% on a fully-diluted basis) in the Mattress Firm to Tempur Sealy International. Under the terms of the agreement, Tempur Sealy will acquire 100% of the equity in the Mattress Firm for an enterprise value of c. $4 billion. The consideration will consist of c.$2,7 billion in cash and 34,2 million shares in Tempur Sealy. Following the transaction, which is expected to close in the second half of 2024, Steinhoff will indirectly own c.7.5% of the combined company. The share consideration received will be subject to a three month lock up. Proceeds from the sale will be used to repay financial indebtedness.
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The Futuregrowth Community Property Fund (Old Mutual) has acquired Sam Ntuli Mall for an undisclosed sum. The acquisition of the property brings the Comprop portfolio to 24 shopping centres valued in excess of R7,3 billion.
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The deal announced in July 2022 between Vukile Property Fund and the City of Johannesburg (COJ) for the acquisition by Vukile of the Pan Africa Shopping Centre has been terminated. Shareholders were advised that the COJ ‘failed to review and grant the amendment to the notarial head lease and to consent to the cession and assignment of the lease to Vukile”.
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Unlisted Companies
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Oakantswe Construction and Projects, a Pretoria-based, black women owned and managed electrical contracting firm, has received funding from the Abadali Equity Equivalent Investment Programme (EEIP) administered by Edge Growth. The funding will be used to enhance service delivery by reducing equipment hire costs and improving turnaround times and to establish an inhouse qualified team.
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Mineworkers Investment Company through its venture capital initiative Khulisani Ventures, has announced a R25 million investment in healthcare technology company Quro Medical. The startup provides premium healthcare solutions at affordable rates such as the Hospital at Home Program, the first of its kind in Africa.
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Black-owned and managed investment holding company Sithega has acquired a 62% stake in Legal Expenses Group Africa for an undisclosed sum. The remaining stake is held by Hollard. This is not the first time that Hollard and Sithega have stitched a deal together – in April 2019 Sithega acquired a controlling stake in Prescient from Hollard and anchor investors.
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Afrihost, a South African Internet Service Provider, has acquire a majority stake in Home-Connect from CipherWave as consolidation of the local fibre market continues. Financial details were undisclosed.
4 May 2023
Exchange Listed Companies
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Mining Companies took centre stage this week:
Gold Fields has partnered with Osisko Mining to develop the Windfall project in Québec, Canada. The companies will develop and mine the underground Windfall Project. Gold Fields has acquired a 50% interest in the feasibility stage for a cash payment of C$300 million with a further cash payment of C$300 million payable on issuance of key permits. Under the partnership Gold Fields has also acquired a 50% up-front vested interest in Osisko’s highly prospective Urban Barry and Quévillon district exploration camps – in exchange Gold Fields will fund the first C$75 million in regional exploration on the properties over the first seven years, thereafter exploration spend will be shared.
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Glencore has announced the purchase of an 30% equity stake in Alunorte and a 45% stake in Mineracão Rio do Norte for a combined equity value of c.US$775 million. The acquisitions from Norwegian Norsk Hydro are inter-conditional. The Brazilian acquisitions provide Glencore with exposure to lower-quartile carbon alumina and bauxite – enhancing Glencore’s capability to supply the materials in the ongoing energy transition.
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In February Sibanye-Stillwater, which had a 19.9% stake in Australian retreatment mine New Century Resources, made an unsolicited offer to acquire the remaining stake. The takeover offer of A$1.10 per share saw Sibanye’s stake increase to 87.64% by March 21, 2023. The company will now acquire all remaining shares that have not been validly accepted in the offer. Sibanye has been unhappy for some time with New Century Resources’ strategic direction. The transaction is valued at A$120 million (R1,5 billion).
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Unlisted Companies
Local real estate company Only Realty Property Group has acquired a majority stake in Leadhome, a tech-driven, full service real estate agency.
27 April 2023
Exchange-Listed Companies
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Capital Appreciation has acquired 100% of Dariel Solutions, the holding company of Dariel Software. The R131,2 million purchase price will be settled through cash (R85,3m) and Capital Appreciation shares (25,243,779 shares at R1,52 each, totalling R38,4m).
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Unlisted Companies
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The UK’s Card Factory, has acquired 100% of SA Greetings Corporation for £2,5m in cash. SA Greetings is a wholesaler of greeting cards and gift packaging. It operates 24 “Cardies” stores and owns a roll-wrap production facility.
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Convergence Partners has acquired a stake in 42Markets, a financial and capital markets fintech investment group, for US$10 million. The investment was made through the recently closed, US$296 million, Convergence Partners Digital Infrastructure Fund. The capital will be used to speed up the development and expansion of its portfolio companies (Mesh, Andile and FXFlow).
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Consumer rewards app, Maholla, has raised US$1,5 million in seed funding. Investors include the Buffet Group, Castleton Capital, Praesidium Capital Management and Galloprovincialis. Moholla’s app rewards users for scanning any receipt from any store. It then links the retail-agnostic shopping data to the consumer and provides a real-time understanding of what consumers are purchasing in SA.
13 April 2023
Exchange-Listed Companies
The results of GMB Liquidity’s November 2022 offer to Grand Parade Investments minority shareholders has closed, with an uptake of just 4.49%. Shareholders holding 21,107,480 PGL shares accepted the R3.33 per share offer. GMB Liquidity’s stake in the company has increased to a controlling 53.65%.
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Stor-Age Property REIT is to acquire a 10% equity stake in a joint venture which has acquired the four property Easistore portfolio. The £4,4 million investment has been made along side Nuveen Real Estate which will hold 90% of the joint venture, providing Stor-Age with the opportunity to partner with the global investment manager. The company has the right of first refusal should Nuveen wish to exit any of the properties or portfolio.
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Delta Property Fund is in the process of concluding the disposal of four office properties to DMFT Property Developers. The properties situated in Kimberley, Bloemfontein, Klerksdorp and Polokwane for a cash consideration of R50,8 million. The disposals are a category 1 transaction and so require shareholder approval. In a separate agreement Delta is to dispose of a property in Potchefstroom Central to Enaki Investment Holdings for R21 million.
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Impala Platinum has concluded agreements to acquire a further 2.94% stake (8,543,294 shares) in Royal Bafokeng Platinum, resulting in an aggregate stake of c.44.48%.
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Glencore has amended its unsolicited proposal to the Board of Canadian miner Teck by introducing a cash element to the all-share acquisition of Tech by the company followed by a demerger of the combined coal business. Teck shareholders would now own 24% of MetalsCo and US$8,2 billion. Glencore is also prepared to offer a combination of cash and/or CoalCo shares (up to a 24% stake) if all Tech shareholders were to elect shares rather than cash.
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Wilson Bayly Holmes-Ovcon’s 2006 B-BBEE ownership transaction (Akani 1) is due to expire and will be wound up. The company proposes to establish a new scheme (Akani 2) and has entered into agreements with three trusts to whom it will issue 4,500,000 WBHO shares at a price of R0.01 per share. The shares, which will be held in a SPV, will be allocated as follows: 90% held by the BBESI Trust (employees of WBHO below a certain skill level and have been employed for five years), 8% by the ASI Trust (employees above a certain skill level) and 2% by the ADB Trust (for the benefit of black women, youth and those living in rural and under-developed areas).
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Unlisted Companies
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Agri-tech startup FarmTrace, a cloud-based farm management tool has received a significant equity investment from Secha Capital and Hassium Capital. The undisclosed sum will be used to grow the company’s capacity and bring about a next wave of farming cost savings, yield and efficiency improvements as the company serves more farms, more products as it grows its footprint.
5 April 2023
At last, and not a moment too soon, a busy week for the companies on South Africa’s stock exchanges.
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Exchange-Listed Companies
Investec plc and Rathbones Group plc have reached an agreement regarding an all-share combination of Investec Wealth & Investment (Investec W&I UK) and Rathbones to create a leading discretionary wealth manager in the UK. Under the terms of the combination, Rathbones will issue new shares in exchange for 100% of Investec W&I UK. On completion, Investec will own 41.25% of the economic interest in the enlarged Rathbones Group, with voting rights limited to 29.9%. The terms of the combination imply an equity value of c. £839 million for Investec W&I UK. The transaction includes Investec’s wealth and investment businesses in the UK and Channel Islands but excludes those in Switzerland and South Africa.
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Absa proposes to implement a c. R11,16 billion deal which will distribute a 7% stake in the company to a Corporate Social Investment trust (4%) and a further 3% to its staff trust. The company says that the CSI scheme and the SA Staff scheme will enhance its B-BBEE credentials to at least 25%. The 62,6 million shares (7%) will be sourced from the existing 16 million shares currently held in the Absa Empowerment Trust, 12,7 million of which were obtained as part of the separation from Barclays in 2017 (currently held by Newshelf 1405) and 46,6 million new shares which will be sourced through a specific issue of shares for cash to Newshelf 1405.
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Glencore has made an unsolicited proposal to the Board of Canadian miner Teck, which contemplates an all-share acquisition of Tech by the company followed by a demerger of the combined coal business. Glencore and Teck shareholders would own c. 76% and 24% of the merged entities, respectively. The Teck Board has rejected the proposal advising its shareholders to do the same.
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Outsurance Holdings, an 89,7% owned subsidiary of Outsurance Group, is to acquire 50% of a stake held by former CEO and founder of Outsurance Holdings in Australian insurance operation Youi. He holds an equity stake of 5.3%. The stake will be acquired for A$36 million in cash.
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Omnia, via its subsidiary MBE, has signed a conditional sale and purchase of shares agreement with Indonesian MNK which will see the companies combine their explosive businesses in a move to enhance opportunity for growth and expansion in the global mining market. The joint venture will combine BME’s technology and innovative products and systems with MNK’s local networks, experience and resource, creating a highly differentiated and integrated offering with an expanded suite of products and services for both surface and underground mines.
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Blackstone and the Board of Industrials REIT have reached an agreement on key financial terms of a possible cash offer to the company’s minority shareholders. Under the terms of the final offer, shareholders would receive 168 pence per ordinary share in cash. The companies expect to make a firm intention announcement by 14 April, 2023.
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Old Mutual Alternative Investments fund, Hybrid Equity, has invested R150 million into Enable Capital, a funder in national fibre network infrastructure in South Africa. The investment allows Enable Capital to find solutions for specific challenges faced by the subcontractors involved in the physical construction and deployment of local, regional and national fibre network infrastructure in the country.
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Hammerson plc has completed the disposal of its 25% stake in Italie Deux, a shopping centre in Paris and 100% of Italik extension for a cash consideration of €164 million. This represents a 4% discount to the December 2022 book value and a net equivalent yield of 5%.
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Industrials REIT has disposed of its interest in German care home joint venture for £15,6 million. The disposal marks the transition for the company into a 100% UK multi let industrial business. For the past five years, the company has been disposing of assets valued in aggregate at c.£600 million as part of its strategy to dispose of non MLI investments.
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Texton Property Fund has disposed of Alrode Industrial Park to Benav Properties for R50 million. The disposal proceeds will be used to repay debt and further develop its SME strategy.
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Sirius Real Estate has disposed of a mixed-use business park in Wuppertal, in North Rhine Westphalia, Germany for €8,8 million.
In a related party announcement Visual International is to acquire a 20% interest in Tuin Huis, a residential property development company, for a nominal sum. Tuin Huis has undertaken two trial Infill Housing Projects in the Durbanville area. Visual will be responsible for building and/or project managing all the development projects undertaken by Tuin Huis at cost.
In another related party transaction, Grindrod has disposed of a London residential property to the Grindrod family for £1,65 million (R35,56 million). The reason for the disposal – the company no longer has London-based operations following the spin-off of Grindrod Shipping.
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Oceana has advised shareholders that the disposal of the Commercial Cold Storage business, announced in October 2022 is now unconditional. In addition shareholders were informed that Mokobela Shakati, a member of the purchasing consortium had been replaced by Ntiso Investment, sponsored by Mcebisi Jonas.
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Unlisted Companies
Peach Payments, a local digital payment service provider enabling seamless, secure transactions for business and consumers in Africa, is to receive €29 million in Series A funding from Apis Growth Fund II. Peach Payments currently operates in South Africa, Kenya and Mauritius. The funds will be used to expand its product offering and reinforce its merchant value proposition. Other investors in Peach include Launch Africa, AG Venture and UW Ventures.
30 March 2023
Exchange Listed Companies
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Oando Plc has confirmed it has received an offer from its core shareholder Ocean and Oil Development Partners (OODP) to acquire the shares it does not already own in the company. Information contained in a company release in June 2022, stated that OODP held a 57.37% stake with minorities holding the remaining 42.63%. Under the scheme, shareholders will receive ₦7.07 in cash, representing a 58% premium to the last traded share price of Oando on 28 March 2023. In June 2022 a petition was filed with the Federal High Court, Lagos Division for and on behalf of Oando’s minority shareholders led by Venus Construction, requesting that the Court orders the buyout of their entire shareholding.
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In accordance with its strategic review of operations, RCL FOODS has entered a binding agreement with EMIF II Investment, to dispose of Vector Logistics for a total cash consideration of R1,25 billion. Earlier this month, the Company resolved to separate its value-added branded businesses from its poultry and logistics operation in order to better position them for optimal growth as independent entities.
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PBT Group subsidiary Halliard International Besloten Vennootschap is to dispose of its entire shareholding in Payapps, a global provider of construction payment management Software as a Solutions service. The acquirers, existing shareholders IFM Growth Partners, Saniel Ventures and the Jasper Foundation will pay A$14,35 million (R175,57 million) in cash for the stake. The group intends to distribute the net proceeds to shareholders in the form of a cash distribution.
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Murray & Roberts United Kingdom has entered into an agreement with AvidSys Group, in terms of which the company will dispose of its 65% shareholding in Insig Technologies. The disposal consideration for the Perth-based mining technology company was A$1, with AvidSys assuming A$7 million of Insig’s liabilities.
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The mandatory offer to Sable Exploration and Mining (SEAM) minority shareholders closed on 24 March with 428,233 shares tendered, representing a 9.8% equity stake in the company. PBNJ now holds 2,6 million SEAM shares representing 59,9% of its issued share capital.
23 March 2023
Exchange Listed Companies
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Rand Merchant Bank (FirstRand) has acquired a 25% shareholding in Remgro’s Ubiquity Energy platform, a strategic energy focused investment vehicle. Ubiquity is the holding company of Energy Exchange of Southern Africa (Energy Exchange). Energy Exchange is a NERSA licensed electricity trader, offering corporate customers an attractive, renewable, alternative source of electricity produced by independent power generators.
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Equites Property Fund has sold two distribution centres in the UK to an investment fund managed by New York headquartered Clarion Partners Europe. The distribution centres, located in Peterborough were sold for a cash consideration of £51,81 million. The sale will release net cash proceeds of c. R1 billion, lower the loan-to-value ratio across its portfolio, increase the weighted average lease expiry of the portfolio and enhance the growth profile of distributable earnings per share over the long term.
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Capital & Regional Plc has confirmed the sale of its interest in The Mall, Luton shopping centre to SDI (Luton) for £58 million.
Schroder European Real Estate Investment Trust has acquired, for €11m, a freehold industrial warehouse in Alkmaar, the Netherlands, reflecting a net initial yield of 5.6%. Commenting on the acquisition the company said “this was a rare opportunity to acquire a highly sustainable asset with a strong and visible income profile that enhances the Company’s sector weighting, average unexpired lease term and credit strength”.
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Sibanye-Stillwater is to provide A$30 million in financial support to New Century Resources following the suspension of operation at the Century mine due to extreme weather impacting Northern Queensland. In February, Sibanye announced a takeover bid to acquire up to 100% of New Century’s share capital through an off-market transaction. The offer will close on 11 April 2023. As of 21 March, Sibanye’s interest in New Century has increased to 87.64%.
9 March 2023
Exchange Listed Companies
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Sea Harvest Aquaculture (Sea Harvest) which currently owns a 54% stake in Viking Aquaculture, a vertically integrated, sustainable abalone producer is to acquire a further 28%. Viking has farms in the Western and Northern Cape and two vertically integrated oyster farming operations in South Africa and Namibia. Minority shareholders Viking Fishing Group Administration and Odin Investments, holding 18% and 10% respectively, will sell their stakes to Sea Harvest in a deal valued at R210 million.
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At last Heineken International has received Competition Tribunal approval for its acquisition of JSE-listed Distell – a complex deal over several jurisdictions valued at c.R39,5 billion. The deal was first announced in November 2021. The expected termination of Distell’s listing on the JSE is 28 April 2023. The company has accordingly postponed its AGM which was due to be held on 17 March as the company will now be preparing for and implementing the various pre-scheme transactions – required to be implemented before the scheme of arrangement between Distell and its shareholders can be implemented. The AGM has been rescheduled to 18 May 2023.
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The original deal to acquire the remaining shares in Premier Fishing and Brands announced in early December via a scheme of arrangement has been amended. Initially African Equity Empowerment Investments (AEEI) made the offer to acquire the remaining 6.14% stake (15,976,380 shares) at R1.60 per offer share. The Takeover Regulation Panel has agreed to the substitution of the offeror with Sekunjalo Investments which controls AEEI.
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Exemplar REITail has acquired from related party McCormick Property Development, a 50% undivided share in Mamelodi Square. The consideration payable for the stake is R116,5 million.
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In early December 2022, Brait, the owner of Premier, backtracked on its plans to list the food manufacturer on the main board of the JSE, giving as its main reason an unconducive capital market environment. Instead, Brait said it would sell its shares to Titan and RMB. Informing shareholders, Brait now says it has been approached by a group of institutional investors who will commit to participate in an IPO by Premier. Brait says it is considering its options.
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RCL Foods has disclosed it may dispose of its Vector cold chain distribution business following engagements with a potential buyer. The company, majority-owned by Remgro, did not give any further details.
2 March 2023
Exchange Listed Companies
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MultiChoice has entered into an agreement with Nasdaq-listed Comcast subsidiaries NBCUniversal and Sky to form a new partnership. The new Showmax Group will be 70% owned by MultiChoice and 30% by NBCUniversal and will build on Showmax’s success to date. The service will combine MultiChoice’s accelerating investment in local content with an extensive pipeline of international content licensed from NBCUniversal and Sky.
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Sanlam’s private equity arm has, through its SPE Mid-Market Fund 1, acquired a controlling interest in SkipWaste, a leading provider of integrated waste management solutions. Financial details were undisclosed.
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Nikkel Trading 392 has advised Brikor that it has entered into written agreements with major shareholders of the company to acquire 567,57 million shares (representing a 67.7% stake) at a price of R0.17 per share. The first tranche (34.1%) will be settled immediately while the second tranche representing 33.5% will be conditional on a number of suspensive conditions. On implementation, an offer to minorities will be triggered.
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Investec Property Fund alerted shareholders to three corporate actions. It is proposing to internalise the asset management function for an aggregate purchase price of R975 million, settled from the sale of disposal properties. In addition, the property fund has acquired a further 19% interest in the Pan European Logistics Platform Hercules Hex Holdco for a gross consideration of €103,8 million representing an implied asset yield of 4.9% and gross asset value of c.€1,1 billion. The fund has established a 50/50 joint venture with the management team of the Irongate funds management business and buy out the Irongate Australia Fund Management Platform from Charter Hall. At the same time, it will acquire an 18.67% equity interest in the remaining Templewater Australia property fund which will be managed by the platform.
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Two deals announced during 2022 have been terminated this week:
Altron has notified the market that its category 2 transaction relating to the disposal of its business interest in Altron Document Solutions and its associated subsidiary Genbiz Trading to Bi-Africa Investment Holdings for R538 million, has been terminated. The deal, announced in March 2022, will not proceed even though regulatory approvals were received. The reason given, is that the parties could not conclude a distribution agreement satisfactory to both parties.
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In December 2022 Sebata entered into a sale of shares agreement with Hellochoice to dispose of its 55% controlling stake in Freshmark Systems for a disposal consideration of R24,75 million. The deal has been terminated as a result of obligations not being met by the purchaser as per suspensive conditions in the agreement.
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Unlisted Deals
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Lescault and Walderman, a US firm providing technology-driven accounting and finance services to small and medium businesses, has acquired a majority stake in local AWCape and a minority stake in Applico – both Sage business partners in their respective regions.
23 February 2023
Exchange Listed Companies
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Sibanye-Stillwater which has a 19.9% stake in Australian retreatment mine New Century Resources, has made an unsolicited offer to acquire the remaining stake. The reason given for the offer is that Sibanye is unhappy with the company’s strategic direction and this tailings retreatment and recycling mine fits nicely into Sibanye’s ‘circular economy’ strategy. At an offer price of A$1.10, representing a large premium, the company will pay up to A$120 million (R1,5 billion) if the deal is accepted.
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Delta Property Fund’s announced deal to dispose of a property situated at the corner of CJ Langehoven and Cape Road, Gqeberha has been terminated. The sale of the property to Rivadex has been cancelled due to the purchaser’s inability to meet their obligations relating to the cash disposal consideration of R38 million.
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Planet42, the car subscription startup addressing transport inequality by putting cars in the hands of people who are unable to access traditional bank credit, has raised $100 million in combined equity and debt funding. The $15 million equity round was co-led by Naspers and ARS Holdings with participation from existing and new shareholders.
16 February 2023
Exchange Listed Companies
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The terminated 2022 deal between Murray & Roberts (M&R) and Italian group Webuild for the R445 million disposal by M&R of Clough Australia, is back on. Creditors have followed the recommendations of the administrators and voted in favour of the deal bringing an end Clough’s voluntary administration process.
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Sanlam’s partial offer to shareholders for the acquisition of up to a 43.9% stake in Afrocentric Investment has been exceeded with acceptances representing 46.4% being received. Sanlam made the offer in October 2022 at R6.00 per share.
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Acsion has acquired an unoccupied industrial property in Pilea, Greece for a cash consideration of €9,24 million. The property was previously owned by a Greek company in liquidation, Philkerman-Jonson.
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Equites Property Fund has acquired from Shoprite the logistics campus in Canelands, KwaZulu-Natal. The acquisition cost of the existing campus is R560 million with a further R78,25 million payable for undeveloped land and costs already incurred by Shoprite in respect of the Development Lease Agreement.
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Metrofile has acquired an additional 15% stake in E-File Masters, the legal entity for Metrofile Middle East which is headquartered in the UAE. The additional stake, the value of which was undisclosed, increased Metrofile’s shareholding to 95%.
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In a proposed transaction, Attacq will dispose of a 30% stake in Attacq Waterfall Investment Company (AWIC) to the Government Employees Pension Fund (GEPF) for an estimated cash consideration of R2,5 billion. In addition, the GEPF will inject a further R300 million into AWIC as a shareholder loan. Should the transaction be implemented, Attacq will retain control of AWIC and continue to provide asset management and administration services to AWIC at market-related fees.
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Spear REIT has disposed of the property known as the Liberty Life Building in Century City, Cape Town to Capitec for R400 million. The sale provides Spear with rebalancing opportunities and an investment bias towards industrial warehousing, logistics and retail assets within the Western Cape.
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Unlisted Companies
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Moshe Capital, a black-women-owned firm, is to take a 20% stake in Pragma Holdings, an engineering services company to local and international companies across various sectors from mining to retail.
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Engen and Vivo Energy are to combine their respective African businesses to create one of the continent’s largest energy distribution companies. The combined group will have over 3,900 service stations and more than two billion litres of storage capacity across 27 African countries. Petronas will sell its 74% shareholding in Engen to Vivo Energy at completion while Phembani will remain invested as a 21% shareholder in Engen’s SA business.
9 February 2023
Exchange Listed Companies
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Anglo American is to acquire a 9.9% stake in Canada Nickel Company which owns the Crawford nickel project in Ontario, Canada. The undisclosed investment is part of Anglo’s approach to expand its nickel offering with additional battery-grade nickel for use in electric vehicles. Anglo will apply its FutureSmart Mining™ technologies to ore samples with the aim of assessing opportunities to improve processing recoveries and reduce the project’s overall energy, emission and water footprint.
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Old Mutual asset manager Futuregrowth has invested in prop-tech startup platform Flow Living. Futuregrowth was the lead investor in the US$4,5 million pre-series A funding round alongside Kalon Ventures, Vunani, Endeavour, CRE Venture Capital among others.
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Sanlam announced two deals at the end of last week. Through its subsidiary Sanlam Life, Sanlam will acquire a 26% interest in Capital Legacy by disposing of Sanlam Trust to Capital Legacy for R390 million in exchange for shares in Capital Legacy. It will also subscribe for further shares in Capital Legacy for R720 million in cash. Sanlam already has exposure to Capital Legacy through its 25% shareholding in Africa Rainbow Capital Financial Services Investments which itself holds (a diluted) 25% stake in Capital Legacy. Sanlam also announced the decision to acquire the remaining 38% stake in BrightRock; it first invested in the life insurer in 2017.
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Thungela has announced a deal to acquire an 85% interest in the Ensham thermal coal operation in Queensland, Australia. The deal, implemented through a new company Sungela Holdings, comprises an equity investment of A$267 million and a mezzanine loan of A$68 million to the co-investors representing R4 billion. The stake will be acquired from Idemitsu with LX International holding the remaining shares.
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Speculation regarding the possible sale of its subsidiary, PPC Zimbabwe for c. US$200m has been dismissed by PPC saying that it regularly receives unsolicited approaches for various parts of its businesses. Any developments on these unsolicited approaches it said, would be shared with the market via official channels. Nevertheless, the market responded positively with the share price up 21% on the rumours.
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The proposed delisting of Premier Fishing and Brands from the JSE by majority shareholder African Equity Empowerment Investments (AEEI) announced in December has hit a regulatory snag – the JSE has advised AEEI that the deal constitutes a related party transaction. That is because AEEI is buying up the remaining 6.14% from minorities at R1.60 per share. Rather than delay the transaction – the circular must be updated – AEEI is considering replacing itself with Sekunjalo Investment Holdings as the offeror. Sekunjalo is the holding company of AEEI.
2 February 2023
Exchange Listed Companies
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Novus Print (Novus) has announced it is finalising the disposal of its Linbro Park Properties which have been carried as an asset-held-for-sale since March 2021. The disposal for R125 million is to Micasa Asset Management. The properties, situated at 46 and 48 Milky Way Drive in Linbro Park have a book value of R109,9 million. The disposal is classified as a Category 2 transaction and therefore does not need shareholder approval.
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Accelerate Property Fund has disposed of the Ford Fourways Building to Hatfield Property Holdings. The property is valued at R87,1 million and is being sold for a maximum cash consideration of R80 million at a yield of 8.9%.
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Ellies has announced the proposed acquisition of Bundu Power from shareholders for a maximum consideration of R202,6m. Bundu Power specialises in the distribution and rental of generators as well as the distribution and installation of solar and ancillary products providing alternative energy solutions. This is a category 1 transaction in terms of the JSE Listing Requirements and as such requires the approval shareholders.
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Unlisted Companies
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Vantage Capital, Africa’s largest mezzanine fund manager has successfully closed its fourth mezzanine fund, securing a total of $377 million of commitments from a mix of European and US-based commercial investors and development finance institutions who include IFC, BII, SIFEM, DEG, Norfund, Swedfund and EIB.
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Convergence Partners’ Digital Infrastructure Fund has closed a funding round raising $296 million (R5,15 billion). The round was backed by existing and new investors based in Europe and Africa.
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Phatisa a local, sub-Saharan African private equity fund manager has acquired a significant minority stake in MHL International, a subsidiary of India’s Manipal Group. MHL is a printing and packaging provider with strong exposure to the food and beverage sector with operations in Kenya and Nigeria. Phatisa’s investment, details of which were undisclosed, will be used to finance expansion opportunities.
14 December 2022
Exchange Listed Companies
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Following the detailed cautionary in June, the Alviva Board has received a firm intention offer to acquire all the issued shares in the company not already owned by the Consortium (Tham Investments, P Ramasamy, Day One Asset Management and certain members of the management team). The proposed transaction is a cash offer of up to R2,56 billion for a purchase consideration of R28.00 per Alviva share, representing a 45% premium to the 30-day VWAP of R19.29. The transaction will result in Alviva becoming a majority black-owned privately held company. Shareholders can expect to receive a circular around December 23, 2022.
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African Equity Empowerment Investments (AEEI) has made a firm intention announcement to acquire the 6.14% equity stake (15,976,380 shares) in Premier Fishing and Brands (PFB) held by minority shareholders. The stake represents the outstanding shares in PFB not held by AEEI excluding the 37.63% stake held by Sekunjalo Investments (3,57%) and 3Laws Capital South Africa (34.06%). AEEI which currently has a 56.23% stake will acquire the scheme shares for R1.60 per share and will delist PFB from the JSE, citing illiquidity and low free float as reasons.
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PBT Group has disposed of its entire investment in preference shares held in Yonex Investments (a B-BBEE company) to Sanlam Investment Management for R53,3 million. PBT intends to distribute R31,5 million of the disposal consideration by way of a special distribution to shareholders.
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Northam Platinum has increased the maximum cash component consideration in relation to its offer to shareholders in Royal Bafokeng Platinum from R10 billion to R17 billion. The offer price remains at R172,70 per share (R180,50 less dividend paid), substantially higher than Impala Platinum’s offer made in December 2021 to RBPlat shareholders of R150 per share – R90 in cash and 0.300 ordinary Impala Platinum shares per RBPlat share (R60).
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Hybrid Equity, a division of Old Mutual Alternative Investments (Old Mutual), has invested a further R420 million to increase its stake in Mulilo. Hybrid Equity made its first investment in 2015 when it invested R120 million in the South African renewable energy developer.
The results of the general offer by Heriot REIT to purchase Safari Investments RSA shares has closed with acceptances from shareholders holding 23,664,848 Safari shares representing 7.6% of the total shares in issue. Following the closing, Heriot and concert parties hold 40.7% of the total share in issue.
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Delta Property Fund continued with its disposal programme, selling the property situated at 28 Central Road in Kimberley. Known as Beconsfield, the property was acquired by Dino & Lambro Investments for R22,1 million. The proceeds will be utilised in the reduction of debt.
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Shoprite has informed shareholders that following the Competition Tribunal’s findings, the August 2021 acquisition by the company of Massmart stores has been approved with certain conditions to address competition and public interest concerns. The ruling sees the exclusion of 15 stores, the majority of which are to be separately divest of by Massmart to small or medium-sized businesses. The final transaction which will be effective on 9 January 2023 will include 42 Cambridge Food and Rhino Cash and Carry stores (including adjacent liquor stores), two Fruitspot facilities, the Massfresh Meat business and 12 Masscash Cash and Carry stores.
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Despite best efforts on the part of Adcorp management to dispose of AllaboutXpert Australia for a fair and reasonable price, the Australian subsidiary has been placed in voluntary administration. The business, on a consolidated basis, contributed less than 1.7% of the group’s revenue for the six months ended 31 August 2022.
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Unlisted Companies
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Epiroc, a Swedish productivity and sustainability partner for the mining and infrastructure industries, is to acquire Pretoria headquartered Mernok Elektronik. Mernok designs and produces proximity detection technologies and collision avoidance systems for customers based primarily in Africa. The acquisition is expected to be completed in the first quarter of 2023.
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Tabono Investments, an investment company in Africa with experience in mining, logistics and recycling, and ACE Green Recycling, a US-based recycling platform for battery materials, are to form a joint venture to build and operate two environmentally sustainable battery recycling facilities in South Africa.
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BOS Brands has secured an undisclosed sum of additional growth equity from an investment consortium to fund the expansion of the BOS Ice Tea brand into the UK from its established base in Europe. The consortium includes Siya Kolisi, his wife Rachel Kolisi, the Banducci family and a follow-on investment by the Ferguson family in the UK.
8 December 2022
Exchange Listed Companies
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Anglo American is to go ahead with a deal first disclosed in June which will see the miner combine its nuGen™ Zero Emissions Haulage Solution (ZEHS) with US specialist engineering company First Mode (the company that partnered with Anglo to develop ZEHS). In addition, Anglo will provide equity funding of US$200 million into First Mode which will accelerate the development and commercialisation of ZEHS. On completion of the transaction, the business will be valued at US$1,5 billion and Anglo American’s stake in First Mode will increase from 10% to a majority shareholding.
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Jasco Electronics is in discussions with its major shareholder, Community Holdings No 1 (CIH) with regards to its intention to make a general offer to minorities to acquire the remaining shares in Jasco. The purchase offer per share of 16 cents represents a 4% premium on the 30-day VWAP of Jasco shares on 2 December 2022.
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Sabvest Capital has acquired a 39.3% equity interest in Valemount Trading, a manufacturer and distributor of products for the local pet market, from R & K Trust. The equity purchase consideration will be determined in accordance with an earnings and cash/debt formula calculated on 28 February 2023.
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The Premier board and its shareholders (Brait) have decided not to proceed with the initial public offer and listing of the company on the JSE due to current unfavourable capital market conditions. Rather, as noted in the pre-listing statement, Titan and RMB will, in specified proportions, acquire the unlisted ordinary shares in Premier from Brait for an aggregated consideration of R3,5 billion by way of a private sale of shares.
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The deal between Murray & Roberts and Webuild announced in early November has been terminated. M&R was to dispose of its interest in Clough Australia. In terms of the deal Webuild would inject A$30 million into cash strapped Clough to avoid placing the company under voluntary administration. The implementation of the loan did not take place resulting in Clough being placed into voluntary administration.
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Unlisted Companies
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Montfort Group, a global commodity trading and related-asset investment company, has entered the local energy market with the acquisition of a 49% stake in New Age Energy, a B-BBEE company focused on the reliable import, export and distribution of safe and high-quality energy products. The new partnership will see Montfort introduce its brand, products and services to the South Africa market.
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CodiumX, an IT investment group headquartered in Johannesburg, has acquired a stake in local data analytics company Intellinexus. The deal will help the company achieve its ambitious target of five to 10 times growth over the next two years through organic growth and acquisitions.
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Swiss media group Ringier is to acquire almost all outstanding shares in Cape-headquartered Ringier One Africa Media (ROAM) from co-shareholders SEEK, and minority shareholders Jabavu and Ceatonia. The deal strengthens Ringier’s long-term investment in certain digital marketplaces in sub-Saharan Africa
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Connect, a UK cloud communications expert has acquired Pivotal Data and illation as it seeks to increase its presence in the South African market. Financial details were undisclosed.
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Atlantis Foods, SA’s frozen seafood distribution company, has acquired Snoek Wholesalers in a deal which will scale the company’s operations and revenue. Snoek Wholesalers represents global brands such as Marfrio and Leroy in SA and sources fish from Peru and China for processing.
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Host Africa, the Cape-based hosting business leading in Cloud Server solutions in South Africa, has acquired Kenyan hosting company EAC directory. Financial details were not disclosed.
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Automation startup Synatic has raised US$2,5 million in a seed extension round to grow its footprint in the US in preparation for a Series A round. The round was led by Allan Gray E-Squared Ventures and UW Venture. Synatic provides complete solutions for the data integration market, offering a low-code/no-coder/your-code solution to simplify the integration of internal and external data sources.
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South African venture capital fund management firm Fireball Capital has, alongside a fund advised by the Development Partners International Fund, invested in Ukheshe International, the UK-headquartered fintech enabler.
1 December 2022
Exchange Listed Companies
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Murray & Roberts (M&R) is to sell its stake in the Bombela Concession Company (BCC) to Amsterdam-based Intertoll International. M&R will dispose of its 33% stake in BCC together with the Murray & Roberts BCC Financing Company which holds a further 17% stake in BCC for a total purchase consideration of R1,39 billion, payable in cash.
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Following the conclusion of its strategic plan to unlock shareholder value, Etion will proceed with the repurchase of all ordinary shares in the company (excluding those shares held by Garlotrim) by way of a scheme of arrangement for a cash scheme consideration of 55.58 cents per share for an aggregate purchase consideration of R313,72 million. Following the delisting of the company from the AltX Board of the JSE, scheme participants will receive an agterskot payment, the total amount of which is equal to a maximum of R17 million.
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A consortium (Newco) of commercial cane growers have submitted an expression of interest to acquire certain assets of Tongaat Hulett which is in business rescue. The proposal to acquire operating mills, refinery, animal feeds and brands aims to ensure the survival of farming operations linked to Tongaat’s operations in the North Coast of KwaZulu-Natal. Funding arrangements are still to be secured.
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Unlisted Companies
Bushveld Energy, a subsidiary of Bushveld Minerals, a South African vanadium producer and energy storage provider, has disposed of its 51% stake in VRFB to London-based Mustang Energy. VRFB is a 50% shareholder in Enerox, an Austrian-based vanadium redox flow battery manufacturer. The transaction, valued at US$19,4 million, will be settled by the issue of 79,4 million new Mustang shares to Bushveld Energy.
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South African end-to-end information and communications technology company Redwill ICT has acquired Opentel, a local fibre and wireless internet service provider (ISP).
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Chariot, an African focused transitional energy company, has formed a joint venture through a 25% stake in a new SA electricity trading company Etana Energy. Other shareholders include Nerua Group (49%), H1 Holdings (21%) and Meadows Energy (5%). Etana Energy has been granted an electricity trading licence by the NERSA.
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Local healthtech startup LIQID Medical has secured R30 million in investment from the SAB Foundation. A medical device development company, LIQID Medical will use the funds to further the development of three core devices (OptiShunt, iPortVR and iFlow) which offer clinically effective, cost-saving and quality-of-life-improving solutions for glaucoma.
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Investment Fund for Developing Countries (IFU), a Development Financial Institution owned by the Government of Denmark, has exited its investment (in the form of loan capital) in local blubbery exporter United Exports.
24 November 2022
Exchange Listed Companies
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EPE Capital Partners has announced that Ethos Private Equity is to merge with New York-headquartered global asset management firm The Rohatyn Group (TRG). TRG has c.US$6 billion assets under management and with the merger this will increase to c.$8 billion. Combining forces will deliver a larger array of investment solutions to LPs of both firms. Financial details were undisclosed.
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Sun International has acquired a further 7.8% stake in Grand Parade Investments (GPI). The stake was acquired from Value Capital Partners for R128,2 million representing R3.50 per share. Prior to the transaction SISA held a 13,3% stake in GPI.
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African Infrastructure Investment Managers (Old Mutual) has committed US$34 million into Kenya’s Road Annuity Programme (RAP) through its pan-African AIIF4 fund. The fund has acquired a 74% stake in Lots 15 and 18 of the RAP from Portuguese firm Mota-Engil. In another transaction, AIIM has agreed to provide an initial equity funding of up to $90 million to support the establishment of a new renewable energy platform NOA Group to deliver net zero energy solutions for Africa.
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Unlisted Companies
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PAPW Fund 3, a mid-market South African private equity fund, has acquired a majority stake in Scamont Investment Holdings, a local engineering OEM specialising in the manufacture, distribution and servicing of positive displacement slurry pumps and multistage centrifugal pumps.
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Carlyle, a global investment firm, has agreed to sell its majority stake in Amrod to Oppenheimer Partners. Amrod is a supplier of branded promotional products in South Africa. The financial details were not disclosed.
17 November 2022
Exchange Listed Companies
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NEPI Rockcastle has entered into a binding agreement to acquire the Atrium Copernicus Shopping Centre in Poland from Atrium Retail. The transaction, for €127 million, includes the adjacent development property. The deal will be funded from existing cash resources.
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Delta Property Fund has disposed of its property situated at 96 First Avenue in Greyville, Durban commonly known as Standard Bank Greyville for a cash consideration of R44 million.
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Impala Platinum has advised Royal Bafokeng Platinum shareholders that it has extended the closing date of the offer to at least 15 December 2022 and the long stop date to 30 December 2022.
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Unlisted Companies
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Condra, a local leader in crane and hoist manufacture, has acquired iTek Drives, a distributor of the Optidrive range of variable frequency drives. The acquisition secures for Conddra the supply of a key crane component and reinforces iTek’s position as an important sales partner of Invertek Drives, a UK-based manufacturer of the Optidrive product range.
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Technology consulting firm BSG has announced the investment in the company by Mteto Nyati. The former Altron CEO who has taken a 40% stake for an undisclosed sum will become the business’ new executive chairman.
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Local healthcare startup Contro, has secured R10,1 million in an oversubscribed pre-seed funding round. Investors included Plug & Play, iCubed Capital, WZ Capital and the Jozi Angels Network. In addition, the telehealth startup received grant funding from i3 fund which is backed by the Bill & Melinda Gates Foundation. The funds will be used to further develop its platform and expand its services.
10 November 2022
Exchange Listed Companies
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Resource counters were in the spotlight this week making the headlines on two occasions
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Northam Platinum announced on Wednesday, exactly one year to the day after the announcement of the initial acquisition of a 32.8% stake in Royal Bafokeng Platinum (RBPlat), that it would bid for control of RBPlat in a voluntary offer worth R31,7 billion. The offer of R172.70 per RBPlat share is on the same terms as its acquisition made in November last year, less the dividend paid out by RBPlats. The offer (cash and shares) is significantly higher than that of Impala Platinum of R150 per share (R90 per share plus 0.3 shares in Impala). The minimum cash consideration offered by Northam is R54.40 assuming full acceptance of the offer, however, if acceptance rates are low, then the full amount will be paid in cash. Northam currently owns 34.52% of RBPlats (37.8% if call options granted are exercised) with Impala having secured 40.71%. The Public Investment Corporation stake of 9.42% makes it an important cog in this bidding war. As a category one transaction in terms of the JSE Listing Requirements, Northam plans to issue a circular by December 7 with shareholder approval required in due course.
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Gold Fields has terminated its proposed acquisition of Yamana Gold following the recommendation by the Yamana Board to its own shareholders to accept the recently announced competing bid from Pan American Silver and Agnico Eagle Mines. One can’t help feeling that Gold Fields has dodged a bullet – for months Gold Fields has been trying, with limited success, to persuade its shareholders that it was not overpaying for the Canadian assets. Had shareholders not voted in favour of the $6,7bn deal later this month, Gold Fields would have had to pay Yamana a break fee of $300 million – the turn of events will see Gold Fields and its shareholders benefitting from Yamana’s termination fee.
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Murray & Roberts (M&R) has signed an agreement with Webuild, an Italian construction a civil engineering group, to dispose of its interests in Australian company Clough, which has for some time experienced acute working capital pressures. Although the business is valued c.A$350 million, the cancellation of an outstanding intercompany loan account will see M&R receiving just A$500,00 in cash.
GMB Liquidity has made a mandatory offer to minority shareholders of Grand Parade Investments (GPL) at an offer price of R3.33 per share – in line with the current market price. The recent on-market acquisition of GPL shares by GMB increased its stake to 35.14%, over the 35% threshold requiring GMB to make mandatory offer. It is however, not GMB’s intention to apply for the delisting of the company from the JSE.
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African Equity Empowerment Investments has entered into a small, related party transaction with majority shareholder (66%) Sekunjalo Investments to dispose of 1,188,916 ordinary shares in Sygnia.
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Unlisted Companies
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In a statement released this week, the Competition Commission has prohibited the proposed deal by Amsterdam-based AkzoNobel to acquire Kansai Plascon Africa and Kansai Plascon East Africa saying it would substantially lessen competition in the manufacturing and supply coatings market.
3 November 2022
Exchange Listed Companies
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Yet another quiet week on SA’s exchanges – one would be forgiven for thinking the migration of Corporate SA to the coast was already underway:
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RMB Corvest, Rand Merchant Bank’s (RMB Holdings) private equity arm, has invested an undisclosed sum in Sedgeley Energy, a solar photovoltaic solutions provider based in Namibia. The deal provides Sedgeley Energy with liquidity required to support its long-term growth plans.
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Shoprite has invested an undisclosed sum in local SA tech startup Omnisient. The investment was made in an undisclosed expansion round with participation from Buffet Investments, KLT, One5 and ENL. Omnisient enables businesses to use consumption data to create new revenue streams.
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The sale by Tradehold of its rental enterprise to Dulu Holdings, announced to shareholders in September this year, has been terminated following the non-fulfilment of various conditions precedent.
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Unlisted Companies
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Sika South Africa, a manufacturer and distributor of a range of construction chemicals, has acquired a majority stake in Italian manufacturer Index Construction Systems and Products. The deal expands Sika’s bitumen product range and boosts its position not only in Italy but also in Europe.
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The Industrial Development Corporation has increased its shareholding in Mozal Aluminium from 24% to a 32.45% equity stake.
27 October 2022
Exchange Listed Companies
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It was another quiet week on SA’s exchanges:
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Altron subsidiary Altron TMT is to dispose of its ATM hardware and support business of ATMT’s Altron Managed Solutions division. The unit will be acquired by NCR Corporations’ South African subsidiary Spark ATM Systems. The purchase consideration is capped at $10 million.
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Emira has published the results of its offer to minority shareholders to acquire Transcend Residential Property Fund. Prior to the offer, Emira held a 45.18% stake in the property fund. The offer was accepted by shareholders owning 22.98% of the shares in issue resulting in an increase in its shareholding to 68.11%.
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Spear REIT has disposed of its wholly-owned subsidiary Blend Property 15, the owner of 15 on Orange, to Zimbali Coastal Resort, a Resrev Malta subsidiary, for a consideration of R246 million. The disposal is in line with Spear’s stated strategy to exit the hospitality sector. The disposal consideration represents a 7% discount to the call option price. The funds will be used to settle debt.
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Unlisted Companies
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acQuire Technology Solutions, a Perth headquartered company, has acquired MTS, a South African-based company specialising in people-centred technology and advisory services such as ESG performance information.
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Hlayisani Capital, a local private equity firm, has acquired a minority stake in Tractor Media, a digital outdoor media company. The investment will be used to acquire key sites, new portfolios and invest in advanced and cutting-edge technologies.
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Local investment holding company Tabono Investments, has acquired a stake in Advanced Group, a risk management, mitigation and emergency response specialist in the mining sector. Financial details were not disclosed.
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Grands Chais de France, French wine giant, has acquired Stellenbosch winery Neethlingshof. Financial details were undisclosed.
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Stonehage Flemming, the British multi-family office, is to acquire South African-based investment firm Rootstock Investment Management in a deal which will boost the UK firm’s assets under management.
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Inospace, a local owner and operator of serviced logistics, has acquired two properties located in Airport Industria in Cape Town. The properties Sky Park and Alkin Park will be rebranded and integrated into Inospace’s network of sites. The assets were acquired from a family office selling its SA assets. Financial details were undisclosed.
20 October 2022
Exchange Listed Companies
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Announcements on merger and acquisition activity by South Africa’s stock exchange listed companies took a back seat this week with the focus of company releases on financial results. However, the following was announced:
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OneLogix has announced details of the management buyout, a deal first proposed in a cautionary announcement to the market in December 2021. Minorities are being offered R3.30 per share, a 17% premium to the 30-day VWAP of R2.82 on October 19 and a 37.5% premium to the closing price on the day preceding the first cautionary announcement in 2021. Extremely low liquidity is the motivation for the proposed delisting, which makes the stock unattractive to institutional investors.
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Afrimat has exercised its option to acquire 100% of the shares in Glenover Phosphate for a purchase consideration of R300 million. The option formed part of the company’s deal in December 2021 when it purchased certain assets and the right to mine selected deposits at the Glenover mine. The acquisition positions Afrimat to enter new commodities aligned with global trends relating to the advancement of technology such as electric vehicles.
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Delta Property Fund is to dispose of Enterprise Park, located at 15 Simba Road in Sunninghill. Delta will receive R39 million from the sale – the property was valued at R45,4 million in February this year. The sale is a category 2 transaction and as such is not subject to shareholder approval.
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Unlisted Companies
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MRI Software, a US-headquartered provider of real estate software solutions, has acquired Johannesburg-based TPN Group, a registered credit bureau serving the residential, commercial and educational markets in South Africa. Financial details were undisclosed.
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Kasada, a local real estate private equity platform focused on hospitality in sub-Saharan Africa, has acquired The Lamantin Beach Resort & Spa located in Saly, Senegal. Financial details were not disclosed.
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Spatialedge, a Stellenbosch-based AI solutions provider, has acquired tech startup Cape AI which assists businesses to make smart decisions through the use of AI technology.
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Strove, a local wellness startup, has secured undisclosed funding from Lifetime Ventures, a Japanese venture capital firm. Funds will be used to further develop its product and service offering to improve the holistic wellbeing of employees.
13 October 2022
Exchange Listed Companies
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Sanlam has made an offer to take control of black-owned JSE-listed investment holding company AfroCentric Investment (ACT). The offer is conditional on Sanlam acquiring a minimum of 36.6% and a maximum of 43.9% shareholding in ACT from minorities at an offer price of R6.00 per share – a premium of 49.01% to the 30-day VWAP. Currently Sanlam, through its subsidiary Sanlam Life, holds a 28.7% stake in ACT Healthcare Assets (AHA) which it acquired in 2014 giving it an effective 27% stake in Medscheme. As part of the transaction, Sanlam will transfer its shareholding in AHA to AfroCentric in exchange for a 28.7% stake in AfroCentric. The deal will see Sanlam expand its client proposition to provide a more holistic product offering.
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Grindrod Shipping has made a further announcement regarding the potential agreement with Taylor Maritime Investments (TMI). Grindrod Investments which holds c.10.12% stake in Grindrod Shipping will tender its shares to TMI in line with the voluntary cash offer to shareholders of US$26 (this includes a US$5 dividend distribution) per Grindrod Shipping share. The voluntary offer however is conditional on TMI receiving more than 50% of the voting rights from existing shareholders by the expiration time of the offer. Should this minimum stake not be achieved, the deal will not take place.
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Ascendis Healthcare shareholders have approved the Ascendis Pharma disposal to Austell Pharmaceuticals in a R432 million deal. The deal was conditional on shareholders not approving the sale of Pharma to Pharma-Q and Imperial Logistics, a R375 million deal first announced in February 2022. In a statement the company said it expected the Austell deal to close by end-October.
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RCL Foods is to unwind its BEE transaction announced in 2013 by way of a repurchase of shares. Subsequent to its implementation the company’s share price has significantly declined in value, resulting in the existing BEE transaction being materially underwater at the end of its term in May 2022. The aggregate repurchase consideration is R229,63 million which will be funded from the company’s cash resources. Since the shares to be repurchased amount to over 5% of the company’s issued share capital, the repurchase is treated as an affected transaction requiring the appointment of an independent expert.
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Spear REIT is to acquire the industrial property known as The Island in Milnerton for R185 million from Inospace 2. The deal is in line with the company’s strategy to increase exposure in the logistics, urban logistics and bulk warehousing in the Cape Town Metropol.
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Heriot has released its offer circular to Safari Investments RSA shareholders detailing its firm intention to make a general offer of R5.60 per Safari share. The offer will remain open until 25th of November. An independent expert will now be appointed by the Safari board to opine on whether the offer is fair and reasonable.
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In a small related party deal, Famous Brands has acquired the properties 478 James Crescent and 37 Richards Drive, both in Midrand.
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Unlisted Companies
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Cape Town-based EXEO Capital, an alternative investment partner in sub-Saharan Africa, has acquired The Vital Health Food Group through Nurture Brands, the convenience foods platform in EXEO Capital’s Agri-Vie Fund II. Vital is a local manufacturer and distributor of vitamins, minerals and supplements. Financial details were undisclosed.
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Sakhumnotho Group, a local equity investor, has acquired a 25% stake in the Boschkrans Boerdery Business, a producer and exporter of citrus and tables grapes. The investment will further Boschkrans strategic vision to be a global role player in the production and marketing of fresh produce.
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Mineworkers Investment Company (MIC) has added to its impact investing portfolio in a deal which will see it take a 24.85% stake in TooMuchWifi for an undisclosed sum. Funds will be used to grow the business and so expand access to affordable data by customers and their communities.
6 October 2022
Exchange Listed Companies
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Harmony Gold Mining has acquired Eva Copper Project and the surrounding exploration tenements in Australia from TSX-listed Copper Mountain Mining. The deal, which sees Harmony paying an upfront cash consideration of US$170 million (c.R3 billion) plus a contingent payment of up to a maximum of US$60 million (c.R1,1 billion), will lower the company’s risk profile. The acquisition will add 1.7818 billion pounds of copper and 260,000 ounces of gold to Harmony’s Mineral Reserves and will extend its diversification into copper – a future-facing metal critical to the energy transition.
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Motus has released further details on the proposed acquisition by its UK-based subsidiary of family-owned business Motor Parts Direct for a purchase consideration of £182 million (R3,64 billion). The acquisition is aligned to Motus’ international growth strategy to reduce dependency on vehicle sales and strengthen its integrated business model by focusing on the aftermarket parts business.
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Anglo American is to form a renewable energy partnership in South Africa with EDF Renewables, a subsidiary of the French utility group. The new jointly owned company, Envusa Energy, will develop a regional renewable energy ecosystem designed to meet Anglo’s operational power requirements in South Africa and support the country’s broader just energy transition.
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Vunani Capital (Vunani) is to acquire a 50% stake in Verso Group, a financial services company specialising in wealth management and Section 13B retirement fund administration. Verso, predominantly Western Cape based, also has offices in Pretoria, Johannesburg, Gqeberha and East London. The acquisition is in line with Vunani’s strategy to expand its financial services activities, particularly in niche markets both in South Africa and across the continent.
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Aveng has, via subsidiary Aveng Africa, disposed of Trident Steel to a consortium for R700 million. Trident Steel Africa, a vehicle established for the purpose of the acquisition is owned by consortium members Ambassador Enterprises, a US-based private equity firm, Joseph Investments, Arbor Capital Investments and Trident Steel management. Aveng will provide R210 million in the way of funding to a separate company in order to subscribe for 30% of the equity in the purchaser, thereby retaining a 30% stake in the business, which will be specifically reserved for B-BBEE participation for a period of one year post closing. The business was seen as falling outside the ambits of infrastructure development, resources and contract mining which, going forward will underpin Aveng’s long-term strategy.
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+OneX (Reunert) has acquired South African Azure solutions provider EUCafrica as part of its strategy to build end-to-end digital transformation solutions for enterprise clients.
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Consortium parties, Old Mutual Life and African Infrastructure Fund 4 (managed by Old Mutual’s African Infrastructure Investment Managers), Bauta Logistics and Mokobela Shakati are to acquire Oceana’s Commercial Cold Storage Group – trading as CCS Logistics. The purchase consideration payable for the Southern African cold storage provider is R760 million. The transaction will enable Oceana to allocate capital to opportunities aligned to its strategic objectives in the global fish protein sector.
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Grand Parade Investments (GPI) has acquired and on sold two properties in relation to the settlement of a dispute with Gumboot Investments. The properties, based in Cape Town and Gauteng were acquired from Gumboot Investments for a transaction consideration of R66,5 million. These were on sold to Karez Trading for R44 million, generating a loss of R22,5 million for GPI – the cost attributed to the indemnity provided by GPI on behalf of its subsidiary Mac Brothers which was placed under voluntary liquidation in April 2022.
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Europa Metals has announced the signing of a letter of intent for an option and joint venture arrangement with Denarius Metals, in terms of which, Denarius will have the right to acquire up to an 80% ownership interest in Europa Metals’ wholly owned Toral Zn-Pb-Ag Project in Leon Province in Northern Spain. The farm-in transaction involves the granting of a two-stage option (to acquire 51% and 29%) in return for funding of certain planned expenditure for an aggregate consideration of up to US$6 million.
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Pan African Resources has announced the closing of the deal in which it acquired the Mogale Gold and Mintails SA Soweto Cluster assets out of provisional liquidation. The R50 million deal was first announced in November 2020.
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Two companies reported the termination of deals announced
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The US$4,7 billion deal announced in August 2021 between Prosus and Indian digital payment provider BillDesk failed to fulfil certain conditions precedent by the long stop date of 30th September 2022.
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Conduit Capital’s intention to acquire 51,769,633 Trustco shares for N$93,7 million, first announce in August 2021, did not fulfil the conditions precedent resulting in the lapse of the share sale agreement.
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Unlisted Companies
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Cape Town-based venture capital firm HAVAÍC has concluded its third investment in Kenyan fintech company Tanda. The investment will enable Tanda to invest in key strategic partners, accelerate product development and scale in Kenya and East Africa over the next 15 months.
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Cars.co.za, the local online car marketplace, has entered into agreement with Sun Exchange to buy into an off-grid solar power project providing off-grid solar power plus battery storage for Karoo Fresh, a commercial farm in SA’s Karoo district.
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Talk360, an international voice calling app which is building a single payment platform to be launched in 2023 combining all local African currencies and payment methods, has raised a further US$3 million in seed round funding adding to the US$7 million raised in May 2022. Investors in the round include Allan Gray E2 Ventures, Kalon Venture Partners, E4E Africa, Endeavor and existing lead investor HAVAÍC.
15 September 2022
Exchange Listed Companies
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UK-based Metropolitan Gaming has sold its stake in Emerald Resort and Casino to a consortium controlled by Tsogo Sun. Financial details were undisclosed.
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Labat Healthcare (Labat Africa) has via its subsidiary Lima Romeo Air which trades as Sweet Waters Aquaponics, entered into a joint venture to establish an extraction facility with Continental Extracts a subsidiary of California-based Caliboyz. Continental has also entered into an agreement to secure the offtake which will be exported through the JV under the existing Sweet Waters export license.
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Motus has disclosed it is close to finalising the acquisition of a foreign aftermarket parts business in a jurisdiction in which it operates. Further details on the acquisition are expected to be announced in early October but Motus expects the purchase consideration to be between R3,7 billion and R3,9 billion.
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Stefanutti Stocks has disposed of its businesses in Mozambique and Mauritius to CCG-Compass Consulting for an aggregate amount of R113,18 million. The proceeds will be applied to the reduction of debt in accordance with the group’s restructuring plan.
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Unlisted Companies
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Bidorbuy, the online shopping and auction marketplace, has merged with logistics provider uAfrica to form a new company Bob Group.
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Alstom, the French rolling stock manufacturer, has acquired the assets for the manufacturing of car body shells from TMH Africa for an undisclosed sum.
8 September 2022
Exchange Listed Companies
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The Industrial Development Corporation (IDC) is to become a 43.75% shareholder in New Okiep Mining (NOM) alongside Orion Minerals which will hold the remaining 56.25% stake. NOM will acquire the prospecting and mining rights from Southern African Tantalum Mining (SADTA) in which the IDC is a 43.75% shareholder. The IDC will then sell 22.22% of its shares in NOM to BEECo, an entity led by Lulamile Xate. Community and Employee Trusts will each acquire a 5% economic participation interest in NOM, resulting in a B-BBEE ownership of approximately 30%.
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Old Mutual has acquired 100% of licensed non-life insurer Generic from various parties including RH Bophelo. The 30% stake held by subsidiary RH Financial Services was disposed of for a cash consideration of R90 million. Details of the consideration paid for the remaining 70% was undisclosed.
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The August 2021 deal announced between Shoprite and Massmart for the sale by Massmart of its Rhino Cash and Carry and Cambridge Food businesses, the Fruitspot business and Massfresh Meat business and 12 Masscash Cash and Carry stores has hit a stumbling block. The R1,63 billion deal has been objected to by the Spar and Pick n Pay in a submission to the Tribunal claiming that if the discount brands were sold to Shoprite, it would lessen competition in the market and create a dominate retailer.
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Unlisted Companies
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Swedish firm Epiroc, a productivity and sustainability partner for the mining and infrastructure industries, has acquired local mining equipment manufacturer AARD in a deal where financial details were undisclosed.
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GardenRouteMan Auto, a black-woman-owned heavy truck dealership, has received an investment of R13,5 million from Volkswagen South Africa’s B-BBEE Initiatives Trust.
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Host Africa, a provider of Cloud Server solutions in South Africa, has acquired DigiServ Technologies, a South African web hosting provider and the leader in low-cost web hosting. Financial details were undisclosed.
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TSK Interiors, a local black-owned commercial interior fitout and construction company, has received an undisclosed investment from the Vumela Fund. The funding will be used to scale the business by providing liquidity to capitalise on larger and more resource-intensive opportunities.
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Octiv, a local gym management software platform, has closed an eight-figure series A funding round led by Knife Capital. Funds will be used to further scale the business internationally. Octiv has a presence in 27 countries, predominantly in Europe with a membership of over 60,000.
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South African healthtech startup BusyMed, has raised undisclosed funding to scale the business and further improve access to pharmacies by improving its technology stack to offer automated and optimised digital healthcare services.
2 September 2022
Exchange Listed Companies
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Majority shareholder Walmart has released details of a firm intention offer to acquire the remaining 47.22% stake in Massmart in a deal worth c.R6,4 billion. The offer of R62 per share represents a premium of 68.7% to the 30-day volume weighted average price as at closing share price on August 26, 2022. Should the scheme not become operative, a standby conditional offer would take effect.
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Huge Group has announced a series of agreements for the acquisition of the Interfile Group, a software company which develops and licences its own software. Huge will acquire a 30% stake from the Msemu Investment Trust for R30 million and a 14% stake from Aloecap Private Equity for R14 million. The company is also finalising the acquisition of Gurb Investments’ 25% stake and the founder’s 6%. As part of the transaction Interfile will bring on board a new BEE partner in YW Capital (also acting as transactional adviser to the deal). The management team will hold 5%. Further information in respect of these transactions will be released in due course.
Grindrod Shipping has warned shareholders it is in discussions with LSE-listed Taylor Maritime Investment in relation to a non-binding proposal to acquire the entire issued share capital of the company. The tender offer is for a consideration of US$26 per share representing a cash price of $21 per share in conjunction with a special cash dividend of $5 per share.
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Master Drilling Mining Services (MDMS), a subsidiary of Master Drilling, has exercised a call option to acquire a further stake in the A&R Group. In July last year MDMS acquired a 25% stake in the engineering group providing mining solutions, training and products for R78,6 million. MDMS latest acquisition at an estimated cost of R129,4 million will increase its stake in the A&R Group to just above 51%. The purchase price is capped at a maximum of R240,1 million.
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Zeder Financial Services, a subsidiary of Zeder Investments, is to dispose of Zeder Africa to ForAfrica Forestry for a disposal consideration of R160 million. Zedar Africa has as its sole asset a 55.62% stake in Agrivision Africa, whose principal activity is the production and milling of agricultural grain produce in Zambia.
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Cognition is proposing to sell its 50.01% stake in Private Property to BetterHome Group, ooba and Fledge Capital in a deal worth R150 million. The rational for the sale is the belief that Private Property may benefit from a more industry-aligned shareholder base with the ability to accelerate the growth of its revised strategy.
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The April 2022 acquisition by Afristrat Investment of Crosscorn from SATF for a purchase consideration of US$5 million, has been cancelled by mutual consent. The reason for the termination of the deal is that given Afristrat’s recent suspension on the JSE, it is no longer able to issue the shares to satisfy the equity component of the purchase price.
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Unlisted Companies
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Africa Bank, as the successful bidder, has acquired the majority of financial services provider Ubank’s disclosed assets and liabilities. Ubank has a presence in the mining sector and a distribution footprint that compliments African Bank’s existing national offering and feeds into its push to diversify funding sources. The parties have agreed on a total cash consideration payable of up to R80 million.
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Nyanza Light Metals, a manufacturer of titanium dioxide pigment and other co-products, has received an initial US$3 million investment from Lagos-headquartered Africa Finance Corporation which will go towards the completion of its plant in Richards Bay Industrial Development Zone – taking the US$550 million project to financial close in H1 2023.
25 August 2022
Exchange Listed Companies
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Richemont is to dispose of a 50.7% stake in its loss-making online luxury and fashion retailer YOOX NET-A-PORTER (YNAP). Italian FARFETCH will acquire a 47.5% stake and Symphony Gold, Mohamed Alabbar’s investment vehicle a 3.2% stake, resulting in YNAP becoming a neutral distribution platform in a move to facilitate a shift towards a hybrid retail-marketplace model. Richemont announced it was impairing €2,7 billion (R45,6 billion) in its YNAP Investment. The deal will see Richemont holding an approximate 12% stake in FARFETCH and will, depending on profit targets met, receive an additional US$250 million worth of shares at the end of five years. In addition, FARFETCH may increase its ownership in YNAP shares to 100% through a put and call option mechanism.
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Prosus has announced the acquisition of the remaining 33.3% stake in iFood, a platform business which includes grocery, quick commerce and fintech, from minority shareholder Just Eat. The cash consideration payable is €1,5bn (R25,5 billion), plus a contingent consideration of up to a maximum of €300 million in cash depending on a re-rating of the food delivery sector.
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MiX Telematics, via its North American subsidiary, has acquired the Field Service Management (FSM) business from Trimble for a total minimum consideration of $6,7 million. The North American operations of FSM include the sale and support of telemetry and video solutions that enable back-office monitoring and visualisation for fleet services management in several industries.
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SEM-listed Universal Partners, which has a secondary listing on the JSE’s AltX, has disposed of its entire shareholding in Dentex Healthcare, a consolidation platform focused on private dentistry in the UK. The acquiring party, Portman Dental Care, is the largest private dental consolidator in the UK, with a growing presence in Europe.
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The general offer by Raubex to acquire the remaining 38.32% stake in Bauba Resources for a cash consideration of R0.42 per share, closed on August 19, 2022. The offer was accepted in respect of 99,64 million shares constituting 13.29% of the total issued share capital of the company. Raubex now holds 74.97% of the company which delisted from the exchange on August 23, 2022. Shareholders not accepting the offer now own shares in the unlisted company.
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The R650 million deal struck between Afrimat and sellers Aquila Steel (Aquila Resources) and Rakana Consolidated Mines for the acquisition of the Gravenhage manganese mining right and associated assets in May 2021 will no longer take effect. Reasons given by Afrimat were that all conditions precedent were not fulfilled by end date August 20, 2022. In particular, the granting of the Water Use License Application was not fulfilled.
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Unlisted Companies
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Sango Capital, a local investment management firm, has made a minority investment in Sundry Markets, a Nigerian grocery retailer operating through the ‘market square’ brand. The investment was made alongside Africa-focused investment company Tana Africa Capital.
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Mergence Investment Managers, through its infrastructure and development fund, has taken a controlling stake in the affordable rental housing group Live Easy.
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The Cape Town Stock Exchange (CTSE) has raised R85 million in a funding round led by venture capital investment company founded by Capitec Bank and Empowerment Capital investment Partners, Imvelo Ventures. Also participating in the round were existing investors, Lebashe Investment, Pallidus Alternative Investments, Shaolin Investments and Gary Strobel. Proceeds of the capital raise will be used to fund ongoing growth and expansion.
18 August 2022
Exchange Listed Companies
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Novus subsidiary Novus Print has concluded an agreement to acquire Pearson plc’s 75% stake in Pearson South Africa for a base consideration of R829,4 million. The remaining 25% stake is held by BEE partners Sphere RB Investments and Pearson Marang Education Trust whose stake will remain in place following the conclusion of the acquisition. Within the Pearson SA stable are the print materials and CAPS-approved textbook publishers Heinemann and Maskew Miller Longman. The acquisition is a category 1 transaction.
Lonmin UK, a wholly owned subsidiary of Sibanye Stillwater has disposed of its majority stake in Lonmin Canada (Loncan) to Ontario-headquartered Magna Mining, valuing Loncan’s assets, which include the Denison project and Crean Hill mine, at C$16 million.
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Mondi plc is to sell its Russian pulp, packaging paper and uncoated fine paper mill Mondi Syktyvkar to Augment Investment for a consideration of RUB95 billion (c.€1,5 billion). The category 1 transaction will require shareholder approval. In a separate transaction, Mondi has agreed to acquire the Duino mill near Trieste in Italy from the Burgo Group for a total consideration of €40 million. The containerboard machine in operation at the mill will strengthen the groups backward integration in corrugated packaging.
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Fortress REIT shareholders have rejected the proposed scheme by the Board to repurchase all the Fortress A shares held, in consideration for the issue of 3.01281 Fortress B shares for every Fortress A share held. This, despite the fact, that prior to proposing the scheme the company engaged extensively with shareholders of both A and B shares on the need to collapse the dual share structure, warning that failure to do so would lead to the loss of REIT status which requires certain distributions of income.
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The acquisition by SGT Solutions (40% owned by Ayo Technology Solutions and 60% held by African Equity Empowerment Investments) of Italian Summer, a company in the power management and backup solutions industry, has been terminated. The reason given for the immediate termination is the unfulfillment of conditions precedent.
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Unlisted Companies
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Seriti Resources has reached financial close on its acquisition of a majority stake in wind-powered renewable energy company Windlab Africa. The acquisition, through its subsidiary Seriti Green, consists of 100% of Windlab South Africa and 75% of Windlab East Africa. Windlab Africa is valued at c. US$55 million (R892 million). As part of the transaction involving debt and equity, RMB and Standard Bank have each taken a 14.5% stake in Windlab Africa for transaction considerations of US$5,8 million (R95,1 million).
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Pretoria-based veterinary pharmaceutical company Afrivet Southern Africa has been acquired by US animal health distributor Bimeda. Afrivet also operates in Zambia and Mozambique while Bimedia has a long-established presence in Africa. Financial details were undisclosed.
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City Logistics and private equity firm Clearwater Capital have acquired the Fastway Couriers South Africa franchise, with City Logistics taking the majority 70% stake. Financial details of the transaction were not disclosed.
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Sango Capital, a local investment management firm, has acquired a controlling stake in Tunis Stock Exchange-listed Sotipapier, a manufacturer of Kraft paper, test line and flute paper based in Tunisia. The stake was acquired from private equity firm SPE Capital for an undisclosed sum.
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Homefarm, a Johannesburg-based agritech startup, has raised c.R1,7 million in a seed funding round. The funds will be used to scale its operations, improve its service offering and roll out its marketing and distribution channels. The startup has as a fully automated indoor farms model which allows people to grow their own food.
11 August 2022
Exchange Listed Companies
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The proposal to Telkom by network operator Rain, that it rather merge with it than MTN, prompted the release of a SENS announcement on Thursday by the Takeover Regulation Panel informing the market that the potential offer to merge was unlawful and that Rain had been instructed to retract the announcement.
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Datatec UK subsidiary Logicalis UK&I has acquired Q Associates, a provider of IT consultancy and advisory services around data management, data protection, compliance and information security. The acquisition will extend the reach and skills of the UK subsidiary, increasing value to customers especially in Higher Education and Government Secured Services sectors.
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The Central Energy Fund SOC has completed its due diligence following its decision to invest R1 billion for a 10% ownership stake in Renergen’s Virginia Gas Project.
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BHP has made a non-binding indicative proposal to acquire Australian miner OZ Minerals in a deal valued at A$8,37 billion. Although the OZ Minerals board has rejected the offer as undervaluing the stock, the A$25 per share offer reflects a 41.4% premium to the 30-day VWAP of A$17.67 per share up to and including the share price on August 5, 2022.
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Libstar has concluded an agreement to acquire Cape Foods, a Cape Town manufacturer of a wide range of branded and private label herb, spice and seasoning blends. The product range is marketed both locally and internationally in more than 30 countries. The transaction is in line with Libstar’s strategy to grow its basket of non-commoditised food products in existing categories. Financial details of the transaction were undisclosed.
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Sun International is to dispose of a property in Menlyn, Pretoria to Menlyn Maine for an effective R198 million and will acquire from Vast Way, a 14.25% equity interest (and loan account) in Time Square for R125 million.
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Globe Trade Centre S.A. has announced a change in strategic expansion to include new sectors identified by the company for investment. These sectors include investment in innovation and technology parks, renewable energy facilities and development of private rented (residential) sector property. As part of this new strategy, the company announced the acquisition of a 25% stake in a joint venture investment in Kildare Innovation Campus, located outside Dublin for c. €115 million.
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Delta Property Fund has disposed of four properties, three in Bloemfontein and one in Kimberly, to various parties for an aggregate R16,6 million.
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Deutsche Konsum REIT-AG, a real estate company focusing on German retail properties in micro-locations, has acquired the retail park Cottbus-Center and two grocery stores in Saxony-Anhalt.
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Unlisted Companies
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DataProphet, a local Cape Town-based startup which uses artificial intelligence to provide the manufacturing industry with impactful solutions to optimise production, has closed a US$10 million series A round. The round was led by Knife Capital. The investment will be used to accelerate international expansion.
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South African VC firm HAVAÍC has invested US$500,000 in FinAccess, a Kenyan software solutions provider that digitises community banks and farming co-operatives in the East Africa region. FinAccess will use the funds, part of a pre-series A funding round, to expand its two core products, banking software solution Fincore and agricultural software solution Grobox.
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Logistics startup Droppa has closed a series A round for an undisclosed amount with logistics company SkyNet Worldwide Express. Droppa is an on-demand courier and fleet hiring e-haling platform. The investment will be used to drive business growth and allow for continuous innovative business solutions.
4 August 2022
Exchange Listed Companies
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Remgro, SAS Shipping Agencies Services (MSC Mediterranean Shipping Company SA), the Mediclinic International board and newly formed Manta Bidco (to be jointly held by Remgro and SAS) have reached an agreement on a recommended cash offer to acquire the remaining 55.44% stake of Mediclinic. Remgro currently holds a 44.56% equity stake in Mediclinic. The acquisition values the entire issued and to be issued ordinary share capital of Mediclinic at approximately £3.7 billion and an implied enterprise value of approximately £6.1 billion. Shareholders will receive 504 pence in cash for each share held, representing a premium of approximately 50% to the volume-weighted average price per Mediclinic shares on May 25, 2022, the day prior to the initial announcement. In addition, shareholders will be entitled to receive the final dividend of 3 pence per share approved at the AGM on July 28, 2022.
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Old Mutual is to acquire a minority stake in funding solutions specialist Preference Capital. Old Mutual has the option over time to increase its shareholding to a majority stake. Financial details were undisclosed.
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African Rainbow Capital subsidiary TymeBank South Africa intends to acquire Retail Capital, a fintech funder of local SMEs, forming the foundation of its expanded business banking offering. Retail Capital has provided funding in the region of R5,5 billion to some 43,000 business owners in SA. Financial details of the transaction were undisclosed.
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Vukile Property Fund, a specialist retail REIT, has acquired the Pan Africa Shopping Centre in Alexandra, Johannesburg for R414,6 million. The seller, the Pan Africa Development Company is held by consortium members Atterbury Property (50.89%), Talis Holdings (47.34%) and Summit Ridge Trading 5 (1.78%). Vukile will also appoint the seller to develop the centre’s second phase expansion which it will then acquire for R254,3 million on opening in April 2024.
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DRA Global has sold its APAC maintenance, shutdown and structural mechanical piping construction business subsidiary G&S to technical industrial services provider KAEFER Integrated Services for A$8 million.
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Shareholders in Cognition have been advised that the company is in discussions regarding the possible sale of its 50.01% stake in Private Property South Africa.
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Unlisted Companies
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Air Liquide’s specialised entity VitalAire, a provider of respiratory care services and products for use by chronic patients at home, has acquired the diabetes division of Ethitech, a distributor of medical technology and diabetes medical devices in South Africa. The acquisition will enable VitalAire to meet the growing need of patients with diabetes, leveraging on innovative connected technologies and offering personalised patient follow-up.
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The Public Investment Corporation (PIC) is to invest US$100 million into the Africa Finance Corporation, a Nigeria-headquartered multilateral financier of infrastructure on the continent. As a shareholder in AFC, the PIC hopes to benefit from co-investment opportunities.
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Mobile ‘play-to-earn’ app Skrmiish, has raised US$2,5 million in a seed round. The Cape-based startup that enables gamers to earn cash in every match played, will use the funding to boost its growth globally.
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28 July 2022
Exchange Listed Companies
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Castleview Property Fund has announced a R5 billion deal with the acquisition of a number of real estate assets including the Willowbridge retail properties, the K346 development properties, iRes residential properties, the entire share capital of Tensai Property Services and more than 50% of the issued shares in Emira Property Fund. If implemented, Castleview will issue shares in excess of 100% of the existing Castleview shares in issue, resulting in a reverse take-over of the company. In addition to the acquisitions and as part of the transaction, the company has announced the issue for cash of a further 51,91 million shares to the Womens Soccer League (34,9m shares) and Streepperdjie (17m shares) at R5.97 per share for a total R309,9 million.
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Investec Property Fund has advised shareholders that the current global macroeconomic volatility has resulted in placing on hold its planned sale of the Pan-European Logistics portfolio.
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RCL FOODS has acquired KZN-based Sunshine Bakery, a company indirectly majority-owned by AFGRI Group for an undisclosed sum. The acquisition will increase bread volumes in the company’s baking network by 28%.
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Equites Property Fund is to dispose of six logistics warehouses in Cape Town to investor consortium Mabel Black Knight Investments for R190 million. As part of the transaction Equites will provide training and facilitate the skills transfer process to Mabel which will enhance their property expertise.
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Rex Trueform and Spear REIT have entered into a sale agreement whereby Rex Trueform will acquire the property 5 Fitzmaurice Avenue in Epping, Cape Town for a gross purchase consideration of R85 million. The acquisiton is seen by the company as a strategic opportunity to diversify and grow its existing property portfolio.
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Unlisted Companies
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Local startup Qwili, a platform providing hybrid hardware-software product to micro and small merchants in South Africa, has closed a seed funding round raising US$1,2 million. The round was led by E4E Africa with participation from Strat-Tech, Next Chymia, Untapped Global and Codec Ventures. The investment will be used for app development and hardware production.
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The sale by BP Southern Africa of a 50% interest in the Cape Town Terminal to the Central Energy Fund’s Strategic Fuel Fund has received approval from the Competition Commission.
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Impresa Capital, a Durban-based venture capital firm, has acquired Gumtree South Africa for an undisclosed sum from Norwegian company Adevinta. Impresa Capital is a majority shareholder of Ignition Group, one of Africa’s largest investors in technology, media, telecommunications and financial services.
21 July 2022
Exchange Listed Companies
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SGT Solutions owned by African Equity Empowerment Investments (60%) and Ayo Technology Solutions (40%) has announced the acquisition of Italian Summer, a supplier of power management and backup solutions and products for commercial and industrial applications throughout Southern Africa. The R73,63 million deal will ultimately create a larger market share in the telecommunication sector through an increase value-add and access to new customers.
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Buka Investments (previously Imbalie Beauty) has made its first acquisition in its journey to become a premium fashion company. The cost of the acquisition of the Socrati Group for R140 million will be discharged by the issue of 70 million shares at R2 per Buka share.
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A caveat to a R590 million loan agreement announced in May between Ascendis Health and Austell Pharmaceuticals is that if shareholders did not approve the R375 million sale of Ascendis Pharma to Pharma-Q and Imperial Pharma announced in February, it would trigger a default under the loan agreement if Ascendis did not then agree to sell the business to Austell at R410 million. Shareholders will be asked to vote on two transactions at the next shareholders meeting.
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Industrial REIT has disposed of Rose Kiln Court in Reading, UK for a total consideration of £5,88 million. The sale price represents a 2.2% discount to its March 31, 2022, valuation of £6,02 million.
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Cautionary notices to shareholders of Telkom and MTN disclosing the companies are in talks (once again), sent the share price of Telkom up 26% and MTN up 5% on the day. Details are yet to be announced but there has been a great deal of speculation on what structure a deal would take. The strategic asset in the Telkom portfolio is fibre – in November last year Vodacom entered a R13,2 billion deal with Remgro’s CIVH to combine their fibre assets.
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Unlisted Companies
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Private equity firm Legacy Africa Capital Partners has taken a 30% equity investment in Continuous Power Africa, a provider of power solution to the telecommunications industry in Africa. Funds will be used scale the business and accelerate growth.
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Actis, a global investment firm focused on energy and infrastructure, together with Mainstream Renewable Power, is to dispose of Lekela Power (60%:40%:), Africa’s largest pure-play renewable energy independent power producer seven years after they made the initially investment. Infinity Group and Africa Finance Corporation will acquire the IPP in a deal said to be valued at c.US$1,5 billion. Lekela Power operates five wind assets in South Africa and one each in Egypt and Senegal.
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Nexia SAB&T has acquired audit firm Kreston Johannesburg as its 10th office in South Africa and its second in Gauteng.
14 July 2022
Exchange Listed Companies
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Glencore has disposed of its stake in BaseCore Metals (a base metal streams and royalties joint venture with Ontario Pension Plan Board) to NYSE- and TSX-listed Sandstorm Gold in a cash and equity deal valued at US$525 million.
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In a similar deal, South32 is to sell a package of four non-core base metals royalties to LSE-listed Anglo Pacific Group for US$185 million plus contingent payments of up to $15 million. Of this $103 million will be paid in cash and $82 million in Anglo Pacific shares resulting in South32 holding a 16.9% stake in Anglo Pacific.
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The Board of Transcend Residential Property Fund has received a firm intention offer from Emira Property Fund to make a general offer to acquire up to 100% of the ordinary shares in the company for a cash consideration of R5.38 per share on an ex-distribution basis. Currently Emira holds 40.69% of Transcends’ issued shares.
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Capital & Regional has disposed of the residential development project in Walthamstow to specialist residential developer Long Harbour for c.£21,65 million. Proceeds will be used to reduce debt.
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Old Mutual Africa (Old Mutual) has taken a significant stake in UAP Old Mutual Life Assurance Uganda following an injection of funds in a move to recapitalise the company. The life insurer’s compliance was threatened as it fell short of its solvency margins. UAP which has a 53% stake in the Ugandan business is owned by Old Mutual.
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Unlisted Companies
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Hyperclear, a Mauritian headquartered technology investment company, has acquired from Apex Partners, Principa, a local African and analytics software firm with operations in SA, the UK and Middle East. Principa provides data-driven solutions to the retail credit industry. Financial details were undisclosed.
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DigsConnect.com, a local digital student accommodation platform which matches landlords with students seeking accommodation, has closed a pre-Series A extension round. The undisclosed investment was secured from Launch Africa, Goodwater Capital, Five35 Ventures and Delta Ventures. Funds will be used to drive international growth.
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Juta and Company has acquired MedicalBrief, a weekly digest of local and global medical matters.
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Infra Impact Mid-Market Infrastructure Fund 1, has acquired a minority stake in Cybersmart, a local internet service provider and fibre network operator. The funding will be used by Cybersmart to solidify its brand and accelerate the rollout of connectivity solutions.
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Imperial, acquired in 2021 by DP World, has expanded its African presence with the purchase, via its Market Access business, of a controlling stake in Africa FMCG Distribution (AFMCG). Part of the Chanrai Group of Companies, Nigerian-based AFMCG is a multi-faceted business offering nationwide and route-to-market solutions across multiple channels.
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California-based seller of fresh strawberries and other berries Driscoll’s is to purchase Haygrove Africa Trading, a local supplier of blueberries in sub-Saharan Africa. Financial details were undisclosed.
7 July 2022
Exchange Listed Companies
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In May, a consortium comprising Remgro and MSC Mediterranean Shipping Company proposed to the Board of Mediclinic International a possible cash offer to acquire the Mediclinic shares not already held by Remgro at a price of 463 pence (R88.43) per share. The proposal was rejected on the grounds that the offer significantly undervalued Mediclinic and its prospects. At the time, Remgro which currently holds a 44.6% stake in Mediclinic, said that it would consider its position. This week Mediclinic announced it would progress with talks on the consortium’s fourth proposal which values Mediclinic shares at 504 pence per share – a premium of 23% to the share price of 411 pence on June 7, the day prior to market speculation. In line with regulations, the consortium must make a firm offer by August 4, 2022.
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Bidvest has announced the acquisition of B.I.C. Services, a niche integrated facilities management services provider across office, commercial and education sites. The acquisition is for an enterprise value of A$160 million (R1,8 billion). It has been some time since a South African corporate has made an acquisition in Australia, not surprising given the poor track record of those who have gone before.
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Huge has acquired Tethys Mobile, currently in Business Rescue, from shareholders and creditors for an undisclosed sum. Once implemented, Huge will change the name to Huge Digital Enablement. Tethys was SA and Africa’s first mobile virtual network operator when it launched to the market in 2006.
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Deutsche Konsum REIT-AG (DKR) has acquired a portfolio of six mainly food-anchored local retail properties in Saxony and Saxony-Anhalt. The properties which have a combined rental area of 9,000sqm were acquired for c.€9,2 million.
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Both Delta Property Fund and Texton Property Fund have notified shareholders that property transactions announced in 2021 have been terminated due to the inability of the purchasers to fulfil conditions precedent. Properties in question were the sale by Texton to Stonehill Property Group of the Forestrust and Loop Street Properties for an aggregate consideration of R397 million and the disposal by Delta of the Fort Drury and Sediba properties to Central Plaza Investments 199 for R76,5 million.
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Unlisted Companies
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Lonsa Everite, together with black-owned and managed South African private equity firm Legacy Africa Capital Partners and Swartland management, have acquired 100% of the issued shares in Swartland Investments and Swartland Insulation, as well as the freehold properties. Swartland is a manufacturer and supplier of wooden and aluminum doors and windows, garage doors as well as XPS insulation and cornices. The business operates in Southern Africa, the UK and the US. The transaction value of c.R1,3 billion was funded through a combination of equity, vendor deferred payment agreement and R660 million of debt financing.
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In another deal, Legacy Africa Capital Partners has invested an undisclosed sum in power solutions provider Continuous Power Africa (CPA). The investment will accelerate CPA’s expansion into new markets beyond telecommunications and grow its range of products.
Fintech startup Sava Africa, a local spend-management platform, has raised US$2 million in pre-seed funding. The platform combines bank accounts, mobile wallet, payments, accounting integrations and invoice and expense management tools. The round was led by Quona Capital with participation from Breega, CRE Ventures, Ingressive Capital, RaliCap, Unicorn Growth Capital and Sherpa Ventures. Funds will be used to launch its product in South African and Kenya.
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Alaris, which delisted from the JSE in February this year, has expanded its footprint in Europe with the acquisition of Kuhne electronic, a German electronics engineering company. Financial details were undisclosed.
30 June 2022
Exchange Listed Companies
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Sibanye Stillwater intends to exercise its pre-emptive right to increase its shareholding in Finish mining and battery chemical company Keliber Oy from 30.29% (acquired in February 2021) to 50% plus one share at a cost of €146 million. The company will also make a voluntary cash offer to the minority shareholders of Keliber (excluding the state-owned Finnish Minerals Group) for a total consideration of €196 million. If successful its shareholding in Keliber will increase to 86.1%.
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Alviva’s empowerment partners Tham Investments and DY Investments 3 have issued a non-binding expression of interest to acquire the remaining 81.4% of the company at an offer price of R25 per share (representing a 30% premium to its 30-day VWAP of R19.50) in a potential deal valued at R2,4 trillion. The consortium has received an offer of funding from Absa.
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In August 2021 Datatec announced it was to undertake an evaluation of strategic options and initiatives to unlock shareholder value. An update in May disclosed that negotiations were underway regarding Analysys Mason (AM). This week the company, via its UK subsidiary, announce the disposal of its 71.2% stake (diluted from 79.4% prior to completion) in AM for £136,1 million. The deal with Bridgepoint Development Capital will see BDC also acquire a 21.4% stake of AM from management.
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Anglo American has agreed to lead the latest investment round of Sanergy, an organic waste upcycling business with operations in Kenya. Sanergy manages waste by upcycling it into high value agriculture and energy products – such as insect-based protein for animal feed, organic fertiliser for regenerative farming and biomass fuel for sustainable, localised power sources.
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RMB Holdings is to sell the A ordinary shares (37.5% stake) in Atterbury Europe plus the shareholder loan claims to existing shareholder Brightbridge for R1,75 billion, to be settled in cash. The aim is to return the proceeds to shareholders in the form of another special dividend.
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Texton Property Fund is to sell Hermanstad Industrial Park in Pretoria to Property Genius and Cream Magenta 228 at a premium to its disclosed book value. With a focus on repurposing its office assets, the disposal further reduces the company’s exposure to industrial assets in its direct property portfolio. The proceeds of the R133,5 million deal will be used to repay debt and to further invest in its SME strategy.
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Motus has issued a letter of intent for potential acquisition of 100% of the shares in an Aftermarket Parts business for cash.
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Etion is to sell its subsidiary Etion Connect, a provider of carrier-grade passive connectivity equipment and solutions that enable telecommunications networks to function, connecting communities, businesses and government with mission-critical connectivity access. The business will be acquired by a newly formed entity Etion Telecommunications (representing management and third party equity partner) for R71,5 million.
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Massmart has announced the acquisition of appliance brand Eiger to add to its private product portfolio. The acquisition follows Massmart’s analysis of South Africa’s appliance market.
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The deal announced in February between Ascendis Health and Apex Management Services for the sale by Ascendis of the assets through which Ascendis Medical operates has been terminated by mutual agreement.
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The October 2021 deal between Acension Properties (Rebosis Property Fund) and Ulricraft (Vunani Capital Partners) has been terminated. Although the conditions precedent of the R3,35 billion deal whereby Ulricraft was to acquire a portfolio of rental enterprises at a blended yield of 9.4%, was extended to allow Ulricraft to obtain finance it was unable to do so within the required period.
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Unlisted Companies
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Zenysis Technologies, a data integration and advanced analytics company headquartered in Cape Town and San Francisco, has closed a US$13,3 million series-B round led by the Steele Foundation for Hope. The funds will be deployed towards building partnerships with governments and local institutions to manage complex linkages between climate change and human health in Africa, Asia and South America.
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Eco (Atlantic) Oil & Gas via its subsidiary Azinam, has signed a farmout agreement for the acquisition of an additional 6.25% participating interest in Block 3B/4B offshore South Africa. The interest will be acquired from the Lunn Family Trust, a shareholder of Riocure. The block is located lies120-250kms offshore South Africa in the Orange Basin. The consideration payable is US$10 million (R158 million).
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23 June 2022
Exchange Listed Companies
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Fortress REIT is to collapse the company’s dual share structure into a single ordinary share. Fortress will offer to repurchase all issued Fortress A shares (excluding the 26,86 million shares held as treasury shares) in exchange for Fortress B shares at an exchange ratio of 3.01 Fortress B shares per Fortress A share.
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The results of the mandatory offer made by private equity funds Glenrock Lux PE No 1 and Glenrock Lux PE No 2 to Universal Partners shareholders of R18,63 per share, closed with just 809,545 shares tendered representing 1.12% of the company’s shares in issue. Following the closure of the offer, the offerors collectively own a 35.3% stake in Universal Partners.
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Capital & Counties Properties (Capco) will, in a reverse takeover, acquire the remaining 74.8% stake in Shaftesbury plc in a deal valued at c.£1,47 billion. In terms of the deal Shaftesbury shareholders will receive 3,356 new Capco shares for each Shaftesbury share held. Shaftesbury shareholders will own 53% of the combined group and Capco shareholders 47%.
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Last week the results of the mandatory offer by concert parties Raubex and Pelagic to Bauba Resources minorities secured just 10.59% of the company’s total issued share capital resulting in Raubex holding 61.68% in the company. This week Raubex, who wants to take full control has made a general offer to shareholders at the same price as the mandatory offer or 42 cents per share.
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Oando plc has released the outcome of a court ruling following a petition filed in March 2021 at the Federal High Court in Lagos by 14 shareholders holding an aggregate 42,63% stake. The court has ruled in favour of the request by the petitioners that it order the buyout of their entire shareholding by the company.
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Unlisted Companies
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PAPE Fund 3, a local mid-market private equity fund, has acquired an equity stake in Entersekt, a global leader in device identity and payment authentication.
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Avacare Global, a South African integrated holistic provider of healthcare products, services and solutions, is to receive an equity investment of US$28,6 million from the International Finance Corporation (IFC). The funding will be used to expand its manufacturing and distribution of various pharmaceutical (including generic) and healthcare consumable products in Africa.
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16 June 2022
Exchange Listed Companies
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African Infrastructure Investment Managers (Old Mutual), as part of a consortium which includes Royal Bafokeng Holdings and SUEZ SA, has acquired EnviroServ from Rockwood Private Equity for an undisclosed sum. EnviroServ is the largest private waste management business operating in sub-Saharan Africa.
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The results of the mandatory offer to Bauba Resources minorities show the offer was accepted in respect of 79,412,185 shares, constituting 10.59% of the company’s total issued share capital. The R0.42 per share offer was a joint firm intention by Raubex acting in concert with Pelagic.
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Texton Property Fund via its 50% held joint venture Inception Reading, has entered into an agreement to dispose of Broad Street Mall in Reading, UK for a headline consideration of £57,5 million (R1,11 billion) in cash.
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Afine Investments has acquired Glomor Three, a holding company for two petrol station properties. Glomor is owned equally by Petroland and Terra Optimus who will receive in aggregate 8,54 million Afine shares and R2 million in cash. The properties are in Randfontein and White River and have long leases with Engen and Sasol respectively.
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Belvedere Resources has acquired a majority stake (347,945,097 shares) in Buffalo Coal at $0.001552 per share from exiting private equity fund Resource Capital Fund V. In addition to the $540,000 paid for the stake, Belvedere will also assumed a US$27 million convertible loan with the maturity date of June 2023.
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Aveng this week issued a cautionary announcement to shareholders informing them that it was in advanced negotiations to dispose of Trident Steel, a division of Aveng Africa. The disposal is in line with Aveng’s 2018 strategy of disposing assets which are deemed non-core to the company. The proceeds from the transaction will be utilised to settle remaining external debt in South Africa, create further liquidity and strengthen the financial position of Aveng.
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Unlisted Companies
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UK-headquartered Woven Solutions has scaled its presence in South Africa with the acquisition of a majority stake in SA Commercial, a BPO provider based in Cape Town.
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Kasada, the South African-based investment platform, has announced the acquisition of the Umubano Hotel in Kigali, Rwanda. The hotel will be rebranded and redeveloped into a 100-key Mövenpick hotel.
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MFS Africa, a pan-African digital payment company, headquartered in Johannesburg, has raised US$100 million in equity and debt funding in a series-C extension round led by Admaius Capital Partners with participation from Vitruvian Partners and AXA Investment Managers, among others.
9 June 2022
Exchange Listed Companies
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In May, a consortium comprising Remgro and MSC Mediterranean Shipping Company proposed to the Board of Mediclinic International a possible cash offer to acquire the Mediclinic shares not already held by Remgro at a price of 463 pence (R88,43) per share. The proposal was rejected by the Board of Directors as it believed that the offer significantly undervalued Mediclinic and its future prospects. Remgro, which currently holds a 44.6% stake in Mediclinic, released an announcement this week following press speculation saying that following the rejection of the proposal the Consortium was considering its position and may make a further offer but reserved the right to do so at a lower value or on less favourable terms.
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AfroCentric Investment subsidiary, AfroCentric Health, has acquired the remaining 49% stake in AfroCentric Distribution Services from WAD. The decision to bring the specialised marketing and sales company in-house stems from the critical role it performs in the Group’s growth strategy for medical schemes and the new generation products. The stake will be acquired for an aggregate purchase consideration of R75 million.
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Heriot Properties, a wholly owned subsidiary of Heriot REIT, together with concert parties Heriot Investments and Reya Gola Investments, have made a general offer to Safari Investment RSA shareholders to acquire Safari shares. Together the concert parties hold 33.1% stake in Safari and are offering shareholders R5.60 per share. The Takeover Regulation Panel has confirmed that should acceptance exceed the 35% threshold, as a result of the general offer, the parties are not required to make a mandatory offer to Safari shareholders.
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Santam has acquired the remaining 49% stake in JaSure, an app-based insurance provider for an undisclosed sum. JaSure has a younger market reach which Santam intends to leverage with its efficiencies and wider distribution capability.
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The announcement in April by ROX Equity Partners of its intention to acquire all the issued shares in Silverbridge at R2,00 per share, has been amended to waiver certain of the offer conditions following the release of the independent expert report which concluded that the offer was unfair but reasonable. Delisting of the company will not be pursued and following the implementation of the general offer, the shares will remain listed on the JSE.
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The mandatory offer by MCC Contracts and African Phoenix to acquire the remaining 62.23% of the shares in enX at an offer consideration of R5.60 per share closed on June 3, 2022. Only 103,371 enX shares were tendered representing 0.06% of the issued share capital. Following the transaction, the offerors will collectively hold 37.83% of the listed company.
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Unlisted Companies
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Crossfin Technology, a South African fintech group, has acquired a significant stake in payments and technology company Vantage Africa for an undisclosed sum. Trading as VantagePay, the cloud-based platform provides payment solutions to address the massive latent demand for access to trusted financial services in Africa.
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Sonnedix Power, a global independent power producer, has disposed of its South African solar business which owns a 60% interest in the 75MW solar farm known as the Prieska Project in the Northern Cape. Financial details of the disposal to pan-African BTE Renewables were not disclosed.
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Franc, a local fintech app, has raised R8 million in a seed extension round led by 4DX Ventures and has announced a B2B offering Franc Business, a low cost and easy way to invest app. The funds will, in part, fund this initiative.
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Cape Town venture capital firm HAVAÍC has invested US$400,000 in Nigerian multi-channel retail company ShopEX. The retailer mobilises a combination of traditional and digital channels to market, sell and distribute successful and global brands in Nigeria and other African markets. The capital injection will allow ShopEX to scale its presence into new markets.
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MFS Africa, a pan-African digital payment company, headquartered in Johannesburg, has, for an undisclosed sum, acquired US Global Technology Partners (GTP) in a deal which will scale the business to the next growth stage; widening its offering to Africa’s gig economy, the business travel market and millions of individuals through card credentials linked to mobile money wallets for secure online purchases. In addition, the deal will be used by MFS to leverage off GTP’s presence in the US to expand its activities in North America.
2 June 2022
Exchange Listed Companies
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Gold Fields has announced an all share offer to acquire Canada-based miner Yamana Gold. The share-for-share exchange transaction, with an exchange ratio of 0.6 Gold Fields consideration shares for each Yamana share, values Yamana Gold at c. US$6,7 billion (R103 billion). The market reacted sharply to the deal and its dilutive nature, with the share price tanking 23%. It may be worth remembering that in 2016 Sibanye Gold acquired US Stillwater Mining for R30 billion and at the time Sibanye’s market capitalisation was R26 billion – a case of the minnow swallowing the whale. Gold Fields’ market capitalisation on the other hand was R170 billion on the day prior to the announcement of its proposed R103 billion deal. Gold Fields shareholders will own 61% and Yamana shareholders 39%. The combined group will be headquartered in Johannesburg with operations across Canada, Australia, South America, Ghana and South Africa, creating a diversified top-4 gold global major.
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Naspers’ venture capital unit Naspers Foundry has invested R40 million in fintech startup LifeCheq. The startup uses artificial intelligence to lower the cost of financial advice previously accessible only to higher-income earners. This marks the fifth fintech investment and its 11th technology-based transaction.
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Huge Telecom, a subsidiary of Huge Group, has concluded an agreement to acquire the remaining 49.97% interest in Huge Networks from Otel Communications for a purchase consideration of R15 million. In addition, Huge acquired a 5% stake in Glovent Solutions, a company specialising in innovative system design and development for R3 million.
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Kibo Energy is to take a 51% stake in National Broadband Solutions (NBS), following a deal with Hasta Trust. NBS holds a portfolio of long duration energy storage projects with an initial target of c.36,320 MWh capacity. In exchange for the stake, Kibo will grant NBS access to its strategic capabilities and capacity in respect of long duration storage solutions for specific market sectors covered by NBS’ project portfolio.
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Capital & Counties Properties plc is in talks with Shaftesbury plc on a possible all-share merger. Capco has until June 17 to announce a firm intention to make an offer or announce it does not intend to do so as per the regulatory laws governing such actions in the UK.
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Libstar announced in February 2021 the sale of a 70% stake in its household and personal care businesses for R174,6 million to PAPE Fund Managers and Kanaka Chemicals following an offer from the acquirers. This week the company advised that although the businesses had delivered improved an operating profit result despite the volatility of the current economic environment the parties had been unable to conclude the definite agreements relating to the transaction.
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Unlisted Companies
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Wasaa, the Johannesburg-based, black women-owned petrochemicals company has acquired the East London liquid fuel import terminal from BP Southern Africa (bpSA). The deal, the financial details of which were undisclosed, sees Wasaa Terminals take full operational control of the terminal, the movable assets and a 20% stake in the berth to terminal pipeline. bpSA has retained operation of its transport business.
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Enko Education, a network of African international schools headquartered in Johannesburg, has closed its US$5,8 million series B round led by Adiwale Partners with participation from the Steyn Capital family office among others. Funds will be used to increase the number of students in the network.
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West Wits Mining, which is listed on the ASX, is to increase its ownership in the Witwatersrand Basin Project to 74% with the acquisition of a 7.4% stake from Lilitha Resources, its BEE partner for US$50,000 in cash and 96 million West Wits Mining shares.
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South African international calling app startup, Talk360, has secured US$4 million in funding led by HAVAIC with participation from Cape-based 4Di Capital and angel investors. Funds will be used to launch a new pan-African payment platform that will integrate all available payment options across Africa and to expand its international calling operations across the continent.
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Local e-commerce platform Shopstar has secured an undisclosed sum in its third-round funding from Launch Africa Ventures, a pan-African fund headquartered in Mauritius. The platform enables local entrepreneurs to build online stores and grow businesses by offering easy to use professional services. The funds will be used to scale its platform.
26 May 2022
Exchange Listed Companies
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Etion has disposed of its Original Design Manufacturing company, Etion Create, to Reunert subsidiary Reunert Applied Electronics for an estimated R197 million. Etion Create manufactures customised electronic subsystems and products across a range of sectors including Mining and Industrial; Defence and Aerospace; Internet of Things and Sensors; and Cyber Security.
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Capital & Regional plc, the UK convenience shopping centre REIT, has exchanged contracts for the sale of The Mall, Blackburn to the retail arm of Adhan Group of Companies in a cash deal of £40 million. The net proceeds will be used to repay debt secured on the property.
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Deneb Investments’ sale of its property in Worcester, Breede Valley, Western Cape to GS Prospects for R43,5 million will not proceed as the transaction was conditional on the purchaser obtaining a loan against the registration of a first mortgage bond over the property. The condition precedent was not fulfilled by the stipulated date.
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Tradehold is to implement a disposal which will reduce the complexity of its current corporate structure. The company will dispose of its entire shareholding in Moorgarth Holdings (Luxembourg) which holds all the group’s interests in the UK. The disposal to newly incorporated Moorgarth Holdings for £102,5 million is a related party transaction as certain directors of Tradehold are shareholders in the purchaser.
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As part of its strategic initiative to expand on its rental portfolio, Balwin Properties is to repurchase the 75% equity stake in Balwin Rentals from Yieldex Trading 2 for a purchase price of R18 million.
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Raubex and Bauba Resources have announced the extension of the closing date of the mandatory offer to shareholders to June 10, 2022. Raubex, acting in concert with Pelagic made an offer to shareholders of R0.42 in February.
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Sable Exploration and Mining has updated shareholders on its proposed deal with Magni Investment and Lurco Metals announced in Q4 2021. Due to non-fulfilment of certain conditions precedent, the transaction will not proceed.
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Unlisted Companies
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Ironweed plc, a UK exploration and development company incorporated in England and Wales is to acquire Ferrochrome Furnaces, located in Rustenburg, out of business rescue for a nominal fee (R980) and the purchase of outstanding debt (R115 million) from the sole creditor. Upon completion, a further R100 million will be paid over 10 years based on a share of profits from the smelter facility capped at 13.5% per annum.
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Imvelo Ventures has made a follow-on investment in Acumen Software. The undisclosed Series B funding has been used to expand the services of the My Smart City platform.
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Energy giant Électricité de France (EDF) has announced the planned acquisition of a 50% stake in Cassava Technologies business Distributed Power Africa. The partnership will develop hybrid energy solutions for businesses in SA. EDF is already active locally in the low-carbon generation, transmission, distribution and energy efficiency services. Financial details were undisclosed.
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Phatisa, the African private equity fund manager, is in the news again this week, this time as part of a consortium of leading development finance institutions to acquire a significant minority stake in South Africa-based citrus and fresh-produce exporter Lona Group. The other parties to the undisclosed investment were British International Investment, Norfund and Finnfund. The funds will be used for expansion capital to drive growth and investment into cutting-edge sustainable food production.
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Edtech and entrepreneur education company Genius Group has acquired E-Squared Education Enterprises, an Eastern Cape-based entrepreneur-focused primary and secondary school and vocational college. Financial details were undisclosed.
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South African edtech startup FoondaMate has raised US$2 million seed funding in a round led by UK venture capital firm Local Globe. Other participants include Emerge Education, FirstCheck Africa, LoftyInc Capital Management and Future Africa. The startup targets high school students in emerging markets where WhatsApp is used as cheaper to use or free to access. The funds will be used to scale its WhatsApp and Facebook-based learning chatbot across the globe.
19 May 2022
Exchange Listed Companies
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Naspers, through its technology fund Naspers Foundry, has invested R40 million in agritech company Nile. The investment is part of an R83 million equity round. The B2B e-commerce platform, which services small and large-scale farmers, provides direct trade of fresh produce between producers and retailers, wholesalers and processors across the SADC region.
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Nedbank, via its corporate and investment banking division, has made an equity investment into RapidDeploy, an integrated response platform transforming first responder communications centres into data-centric organisations.
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Emira Property Fund has agreed to dispose of its entire 49.9% stake in Enyuka Property to joint venture partner One Property. The stake in the rural and lower LSM retail property joint venture will be sold for an aggregate R637 million, representing a small premium to book value. The proceeds will be temporarily used to reduce Emira’s gearing but will be available for other capital re-investment opportunities.
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Shoprite Checkers, the local subsidiary of Shoprite has announced a plan to recognise its employees’ role in the success of the group by providing them with additional compensation over and above their salary and at the same time increasing its B-BBEE shareholding in the local subsidiary to 19.2% from 13,5%. In the announcement, the company states that 97% of local employees are black and 66% are female. The evergreen B-BBEE Employee Benefit Trust will hold 40 million shares in the local subsidiary and employees (in service for at least two years) will receive dividend entitlements but will not own the shares, so the transaction will not have an impact on the shares in issue in the listed holding company. Non-SA employees will also receive equivalent payment to that of its local employees.
Stefanutti Stocks has disposed of a property in Henville, Germiston to Badenoch Investments for R33 million. The disposal is in line with the company’s restructuring plan to put in place an optimal capital structure and access to liquidity.
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Texton Property Fund has disposed of Woodmead Commercial Park to Benav Properties in a deal valued at R132,5 million. The proceeds of the sale will be utilised to repay debt and to further invest in its SME strategy.
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Sirius Real Estate, the multi-tenanted business park, is to sell Bizspace Business Park in Camberwell, London for £16 million representing a net initial yield of c.2.0%.
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Unlisted Companies
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TooMuchWifi, a local internet service provider, has raised US$1 million in a pre-Series A round led by BLOC SA with participation from Connectivity Capital, Atreyu Investments and other existing investors. TooMuchWifi serves to bridge the connectivity gap by providing uncapped and affordable fibre-backed Internet to the underserved areas in South Africa. The funds will be used to scale operations in existing areas and expand into new communities.
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Phatisa, a sub-Saharan African private equity fund manager, has sold a minority share in Continental Beverage Company, the Côte d’Ivoire bottler, to majority shareholder pan-African investment firm, Teyliom International, for an undisclosed sum.