Who’s doing what in the South African & African M&A space?


Who’s doing what in the South African & African M&A space?

Published Date: 2017-10-19 | Source: DealMakers | Author: Marylou Greig

Who’s doing what in the South African & African M&A space?

JSE Listed Companies

  • Harmony Gold Mining has agreed to acquire from AngloGold Ashanti, the underground mine Moab Khotsong, which incorporates the Great Noligwa underground mine and related infrastructure for a cash consideration of $300 million (R4 billion). Harmony believes that it can extend the life of the mines which are located in the Vaal River region and exploit the Vaal Reef.
  • Premier Fishing and Brands has entered into a binding agreement with Talhado Fishing Enterprises (TFE) and major shareholders to acquire a 50.01% stake in TFE for R87,34 million. In addition the company intends to increase its exposure to the Talhado Group of companies through the acquisition of various minority interests in some of the other fishing and related companies for approximately R19,32 million, giving the company an effective 53. 35% stake in the Group with the right of first refusal to purchase the balance of the equity.
  • AngloGold Ashanti has disposed of its Kopanang Mine, the West Gold Plant and related infrastructure to Chinese capital management company Heaven-Sent SA Sunshine Investment Company (HSC). The purchase consideration is a cash payment of R100 million and the transfer of certain gold bearing rock dumps from Village Main Reef to AngloGold Ashanti. HSC holds a 74% interest in Village Main Reef.
  • Anheuser-Busch InBev's three independently operated breweries in Nigeria, International Breweries, Intafact Beverages and Pabod Breweries are exploring the merger of their operations. Until such time as regulatory and shareholder approvals are received the indirect subsidiaries of AB InBev will continue to operate as separate entities.
  • Lewis has concluded an agreement with the shareholders of United Furniture Outlets (UFO) to acquire the entire issued ordinary capital of the company for a cash payment of R320 million. UFO is a cash furniture retailer with a retail footprint of 30 stores targeting the LSM 9-10+ consumer spectrum.
  • Old Mutual's Alternative Investments (OMAI) has acquired a 50% stake in Faircape Life Right Holdings for an undisclosed sum via its specialist retirement accommodation fund. Faircape owns and operates six luxury lifestyle villages comprising a total portfolio of 976 units at prime locations across the Western Cape.
  • Greenbay Properties has made a firm intention offer to acquire the European assets and businesses of Group Five for a cash consideration of R1,6 billion. The target assets include Group Five's European concession stakes, Bulgarian assets and Intertoll Europe operations and maintenance contracts. Initial reaction from Group Five is that the offer undervalues the assets but will appoint an independent expert to fully consider the offer.
  • Impala Platinum has acquired a 15% stake for cash in the Waterberg development project for $30 million (R400 million). The sellers of the equity interest are Platinum Group Metals and Japan Oil, Gas and Metals National Corporation (JOGMEC). In addition the company has an option to purchase an further 12,19% stake from JOGMEC for $34,8 million and by contributing $130 million into Waterberg it will receive an additional 22,815% equity interest.
  • Sanlam, through its life insurance business, is to acquire Absa Consultants and Actuaries (ACA) for R285 million. ACA houses the entire employee benefits offering of the Absa Group and provides consulting on Asset, Actuarial, Health and Benefit and administration to retirement funds in the local retirement fund market.
  • Dipula Income Fund has concluded an agreement to internalise its management through the acquisition of 100% of the beneficial interest in Asset Management Trust for R142 million, of which 65% will be through the allotment and issue of Dipula shares.
  • Tradehold has concluded agreements to acquire two properties in London for £13,35 million (R234,96 million).
  • Stadio and Brimstone Investment have acquired Milpark Education from Cooperative Apollo Global Netherlands and Encosolve for R320 million. Stadio will own a 70% stake in the company which is one of the first private providers of higher management education in South Africa. Brimstone will hold the remaining 30%.
  • MICROmega has sold its merging markets-focused occupational health and safety training company Nosa Group to asset management multinational Carlyle Group for up to R747,8 million.
  • NEPI Rockcastle, through its subsidiary Tuvalu, it to acquire the Serenada and Krokus shopping centres located in Krakow, Poland. The aggregate purchase consideration of €249,4 million (R3,9 billion).
  • Mas Real Estate has disposed of the office land at New Waverley, a development in Edinburgh, Scotland to Legal & General for a land value of £20,8 million (R366 million).
  • FirstRand has confirmed it has made an exploratory approach to acquire the entire issued capital of Aldermore, a UK retail bank providing financial services to small and medium-sized businesses. The indicative proposal is for a total value of $1,3 billion (R17,16bn).

Unlisted Companies

  • Beijer Ref, a Swedish refrigeration wholesaling group, has acquired the Johannesburg-based wholesaler Tecsa from Westbrooke Investments. The purchase price will be between €26,6 million and €31,3 million.
  • HeroTel has acquired another wireless internet service provider, this time in Mpumalanga purchasing Hi-Tech Wireless for an undisclosed sum. Earlier this month the company expanded its footprint in the Eastern Cape with the acquisition of wireless internet service provider IGEN Wireless.

...and in Africa

  • Havas Group, a global communications organisation, has acquired a 49% stake in two Algerian-based agencies. GANFOOD is a creative and consultancy agency and HVS a media agency. No transaction value was disclosed.
  • Tullow Oil, an independent oil & gas exploration and production group, has acquired a 90% stake in four onshore blocks in Côte d'Ivoire. The blocks are located mostly to the west of Abidjan.
  • Delta Corporation, the Zimbabwe-based associate of Anheuser-Busch InBev, is to acquire a controlling stake in National Breweries of Zambia from Heinrich's Syndicate which is owned by AB InBev.
  • Andela, which builds high-performance engineering teams with Africa's software developers, has secured $40 million in Series C funding. The investment is led by pan-African venture firm CRE Venture Capital with participation from DBL Partners, Amplo, Salesforce Ventures and Africa-focused TLcom Capital.

(DealMakers is SA's M&A publication. www.dealmakers.co.za)

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