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


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

Published Date: 2019-07-12 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Arrowhead Properties and Gemgrow Properties have signed an offer and implementation agreement by which Gemgrow will acquire all of the Arrowhead shares excluding the treasury shares and issue to the scheme participants 0.8237 new Gemgrow B ordinary shares. Arrowhead owns 53.3% of Gemgrow. As the transaction will be implemented as a reverse take-over of Gemgrow by Arrowhead, Gemgrow will change its name to Arrowhead Properties.
  • Naspers subsidiary PayU, has acquired a majority stake in Red Dot Payment (RDP), an online payment solutions provider in Southeast Asia. The Singapore-based RDP is said to be valued at $65 million. In addition, the company has through its Naspers Ventures division make a further investment in dott, the European micro-mobility company co-leading a €30 million Series A funding round with EQT Ventures fund. Naspers made its first investment in dott in December 2018.
  • Emira Property Fund has provided further details of a non-binding indicative proposal to the board of SA Corporate Real Estate (SAC). The proposal will take the form of a 100% scrip offer at an offer price of R3.47 per SAC share reflecting a premium of 5.9% based on respective closing share prices for Emira and SAC on July 9 2019. Emira has yet to receive a formal response to the terms of the proposal, made on June 7, from the independent board of SAC.
  • Investec Property Fund (IPF) has acquired an additional 23% interest in the Investec Argo UK Property Fund for a purchase consideration of £25 million. Following the acquisition, IFP's total investment in the UK Fund amounts to £36,7 million representing a 33% shareholding.
  • Aveng, as part of the non-core disposal process, has entered into a binding sale of its Aveng Dynamic Fluid Control business unit to Copaflo Fluid Control for R129 million. Copaflo is a 100% black owned investment company investing in engineering and manufacturing businesses. As part of the transaction, the property owned by Dimopoint, and in which Aveng has a 30% stake, will be sold for R36 million.
  • Trans Hex has advised shareholders it is considering a transaction in terms of which the it may make an offer to all shareholders, other than Cream Magenta 140, Metcap 14 and RAC Investment (the consortium), to repurchase the remaining issued share capital of the company for R1.00. Currently the consortium holds 79.73% of the issued share capital of Trans Hex. The offer price represents a premium of 108% to the 30-day VWAP on July 4.

Unlisted Companies

  • Oro Verde, the mineral exploration company listed on the ASX, has reached agreement to acquire up to 60% interest in the Makuutu Rare Earth Elements project in Uganda. The project is indirectly (85%) owned by South African company Rare Earth Elements Africa.
  • Knife Capital, the Cape Town-based venture capital company, has invested an undisclosed sum in Cradle Technology Services, a leader in warehousing solutions for small businesses.

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