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The weekly roundup of M&A activity by SA companies. 

Released weekly in M&A Pulse and Ghost Mail

2 February 2023

Exchange Listed Companies

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.

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%.

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.

Unlisted Companies

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.

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.

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

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.

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.

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.

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).

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.

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.

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.

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.

Unlisted Companies

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.

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.

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

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.

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.

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.

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.

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.

Unlisted Companies

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.

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.

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

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.

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.

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.

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.

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

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.

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.

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.

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.

South African end-to-end information and communications technology company Redwill ICT has acquired Opentel, a local fibre and wireless internet service provider (ISP).

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.

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.

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

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.

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.

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.

Unlisted Companies

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.

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

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.

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.

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.

Unlisted Companies

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.

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.

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

Resource counters were in the spotlight this week making the headlines on two occasions

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.

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.

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.

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.

Unlisted Companies

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

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:

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.

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.

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.

Unlisted Companies

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.

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

It was another quiet week on SA’s exchanges:

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.

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%.

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.

Unlisted Companies

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.

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.

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.

Grands Chais de France, French wine giant, has acquired Stellenbosch winery Neethlingshof. Financial details were undisclosed.

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.

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

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:

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.

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.

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.

Unlisted Companies

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

In a small related party deal, Famous Brands has acquired the properties 478 James Crescent and 37 Richards Drive, both in Midrand.

Unlisted Companies

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.

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.

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

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.

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.

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.

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.

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.

+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.

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.

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.

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.

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.

Two companies reported the termination of deals announced

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.

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.

Unlisted Companies

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.

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.

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

UK-based Metropolitan Gaming has sold its stake in Emerald Resort and Casino to a consortium controlled by Tsogo Sun. Financial details were undisclosed.

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. 

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.

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.

Unlisted Companies

Bidorbuy, the online shopping and auction marketplace, has merged with logistics provider uAfrica to form a new company Bob Group.

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

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%.

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.

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.

Unlisted Companies

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

Unlisted Companies

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.

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

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.

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.

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.

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.

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.

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.

Unlisted Companies

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.

Mergence Investment Managers, through its infrastructure and development fund, has taken a controlling stake in the affordable rental housing group Live Easy.

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

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.

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.

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.

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.

Unlisted Companies

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).

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

Delta Property Fund has disposed of four properties, three in Bloemfontein and one in Kimberly, to various parties for an aggregate R16,6 million.

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.

Unlisted Companies

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.

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.

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

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.

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.

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.

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.

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.

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.

Unlisted Companies

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.

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.

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.

28 July 2022

Exchange Listed Companies

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.

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.

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%.

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.

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.

Unlisted Companies

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.

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.

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

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. 

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.

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.

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.

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.

Unlisted Companies

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.

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.

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

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.

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.

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.

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.

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.

Unlisted Companies

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.

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.

Juta and Company has acquired MedicalBrief, a weekly digest of local and global medical matters.

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.

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.

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

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.

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.

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.

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.

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.

Unlisted Companies

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.

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.

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

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%.

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.

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. 

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.

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.

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. 

Motus has issued a letter of intent for potential acquisition of 100% of the shares in an Aftermarket Parts business for cash.

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. 

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.

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.

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.

Unlisted Companies

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.

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).

23 June 2022

Exchange Listed Companies

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.

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.

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%.

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.

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.

Unlisted Companies

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.

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.

16 June 2022

Exchange Listed Companies

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.

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.

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.

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. 

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.

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.

Unlisted Companies

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. 

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.

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

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.

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.

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.

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.

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.

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.

Unlisted Companies

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

Unlisted Companies

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

Unlisted Companies

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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%.

Unlisted Companies

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.

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.

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