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: 2018-03-23 | Source: DealMakers | Author: Marylou Greig

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

JSE Listed Companies

  • Old Mutual has agreed to sell its Latin American businesses to China Minsheng Investment Group International based in Singapore. The businesses include Old Mutual Colombia, a pensions, life insurance, mutual funds, and stock brokerage business; Old Mutual Mexico, a life insurance and mutual funds business; and Aiva, an investment advisor and a distribution platform for independent financial advisers in Latin America. While the price paid for the assets was not disclosed it is believed to be around $300 million (R3,57 billion).
  • Glencore plc has acquired from Rio Tinto an 82% interest in the Hail Creek coal mine and adjacent resources as well as a 71.2% interest in the Valeria coal resources in central Queensland for a total cash consideration of $1,7 billion (R20,4 billion).
  • Oceana Group's US subsidiary Daybrook Fisheries has reached an agreement with Makimry Patrounous, a US company majority owned and controlled by Francois Kuttel, former CEO of Oceana, to acquire the 75% stake in Westbank Fishing. The deal will be vendor financed. Westbank owns Oceana's fishing vessels and Cessna spotter airplanes and must, in accordance with US law, be owned by US citizens. The purchase price for the Westbank interest is $31,5 million (R378 million).
  • Grand Parade Investments has entered into an agreement with Ballesteros Properties to dispose of the property known as 33 Heerengracht Street, Cape Town for R225 million.
  • Grit Real Estate Income Group has acquired, through its wholly-owned subsidiary Grit Accra, an office complex known as 5th Avenue Corporate Offices, West Cantonments, Accra in Ghana. The acquisition price of $14,35 million (R169,33 million) will be fully funded through a debt facility.
  • Orion Real Estate is to acquire five properties from Zephan Properties for R24,75 million. The properties are located in the Free State and Eastern Cape.

Unlisted Companies

  • Tando Resources (TNO), listed on ASX, is to acquire the SPD Vanadium Project based in Gauteng. TNO will acquire the issued capital in Steelpoortvan which has a right to acquire 74% of Vanadium Resources, the owner of SPD Vanadium Project. The total consideration is 35 million shares at a deemed price of 30c per share valuing the transaction at A$10,5 million.
  • Block Commodities, the UK-based company which aims to maximise the value of African agriculture and other commodities through the deployment of blockchain technology, is to acquire a 21% stake in VIPA Holdings, a local wholesale distributor of quality fertiliser and speciality plant and animal nutrition products. The financial effects were undisclosed.

... and in Africa

  • Mubadala Petroleum and Italy's Eni, have signed an agreement to acquire a 10% stake in the Egyptian Shorouk Concession for a consideration of $934 million. The stake encompasses the giant Zohr gas field located in the Mediterranean Sea.
  • Sahel Capital, fund managers for the Fund for Agricultural Finance in Nigeria, is to make a significant investment in Coscharis Farms which is currently developing a rice cultivation scheme with an irrigation system to enable multi-cycle cultivation.
  • MM Group for Industry and International Trade (MTI) has signed a letter of intent to acquire Itsalat International Egypt (i2) through a share swap into MTI shares. i2 is an Egyptian retailer and market distributor of wireless mobile technology, consumer electronics and telecommunication services.
  • Phoenix Group, a Dubai-based agriculture and food company, is to invest in the debt-laden Kenyan operations of rose exporter Karuturi Global. The investment, the value of which is undisclosed, is in the form of debt and equity and will meet debt obligations and restart Karuturi's operations following the conclusion of a four-year long receivership.
  • Milost Global is reportedly looking to inject $1 billion to recapitalize Nigeria's Unity Bank Plc by investing $700 million in equity and $300 million in five-year convertible bonds.

DealMakers is SA's M&A publication.

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