Ansarada DealMakers Annual Awards shortlists


Ansarada DealMakers Annual Awards shortlists

Published Date: 2020-02-07 | Source: DealMakers | Author: Marylou Greig

Ansarada DealMakers Annual Awards shortlists

This is the first year in which this Gold Medal award is to be made. Nominations were received from advisory firms which together with nominations from the DealMakers editorial team were passed on to the Independent Selection Panel who produced a shortlist of four deals.

These are, in no particular order:

Phuthuma Nathi partial switch to MultiChoice Group

In February 2019, MultiChoice Group (MCG) was unbundled out of Naspers and listed on the JSE with a market capitalisation of R46,52 billion. In its pre-listing statement MCG, which owns 75% of MCSA, committed to a share exchange offer in terms of which shareholders of PN1 and PN2 would be afforded the opportunity to exchange a portion of their shares for shares in MCG.

The local advisers to the transaction were: Rand Merchant Bank, Tamela, Webber Wentzel and PwC.

Disposal of Nampak Glass to Isanti Glass 1 (Kwande Capital and SABSA)

Nampak, Africa's largest diversified packaging manufacturer, sold its glass business to Isanti Glass 1, an entity 60% owned by black investment company Kwande Capital and SABSA, the local subsidiary of beer maker AB InBev and holding company of South African Breweries, holding the remaining 40%. The deal, settled in cash, was valued at R1,5 billion.

The local advisers to the transaction were: Nedbank CIB,Standard Bank, UBS, ENSafrica, Bowmans, Tugendhaft Wapnick Banchetti and EY.

Barloworld's Khula Sizwe Property deal

The Barloworld Khula Sizwe BEE transaction was a two-component transaction involving the sale of properties from Barloworld to newly created entity Khula Sizwe valued at R2,9 billion as well as the free issue of Barloworld shares (3% valued at R750 million) to the Barloworld Empowerment Foundation.

The local advisers to the transaction were: Tamela, Basis Points Capital, Identity Advisory, Nedbank CIB, Dentons; Poswa, Webber Wentzel, BDO and Deloitte.

Sale by South32 of South Africa Energy Coal to Seriti Resources-led consortium

In November 2019 Australian-listed miner South32 announced the sale of its 91.835% stake in South Africa Energy Coal to Thabong Coal, a wholly-owned subsidiary of Seriti Resources, and two trusts. Post the transaction Thabong Coal will hold an 81.835% equity stake and each of the Trusts a 5% unencumbered interest for the benefit of employees and communities.

The local advisers to the transaction were: Morgan Stanley, Macquarie Advisory and Capital Markets South Africa, Rand Merchant Bank, UBS, ENSafrica and Malan Scholes.

Criteria used for the selection of the shortlist for Deal of the Year:

Transformational transaction - does the deal or transaction transform the business or even the industry in which it operates? What is the extent of potential transformation as a result?

Execution complexity - does the overall deal or transaction involve multiple steps/a number of smaller inter-related deals? Are there numerous conditions precedent that need to be fulfilled? Does it involve many and/or complex regulatory approvals? Are there related debt/equity raising processes and how difficult are they to implement? Was there significant time pressure to conclude the deal/transaction? Did the deal/transaction exhibit innovative structuring?

Deal size - not an over-riding determinant but a significant factor.

Potential value creation - to what extent could shareholders and other stakeholders benefit from the transaction over time?

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