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: 2019-09-20 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Exxaro Resources has concluded an agreement with Khopoli Investments, a subsidiary of India's Tata Power to acquire the remaining 50% stake in clean energy joint venture company Cennergi for R1,55 billion. Cennergi's assets include two wind farms both of which are situated in the Eastern Cape. The deal is in line with Exxaro's ambitions to grow its presence in the energy sector.
  • Momentum Metropolitan has received regulatory approvals for the disposal, to Nigerian private equity firm Verod Capital Management, of its wholly-owned subsidiary Metropolitan Life Insurance Nigeria. The sale is in line with the company's ongoing review of its African footprint.
  • Aspen Pharmacare has disposed of its wholly-owned subsidiary Phekolong Pharmaceuticals to Indian-based Laurus Labs, a research and development driven pharmaceutical company.
  • Labat Africa has, as part of its business expansion, entered into a subscription agreement with Zarenak to acquire a 70% equity stake in the cannabis cultivator, manufacturer and distribution company. The current shareholders will retain a 30% stake. Zarenka has an interest in 6 cannabis licenses in Lesotho. Labat will pay R57,5 million for the equity stake settled through the issue of 57,5 million Labat shares payable in two tranches.
  • Anglo American's 85%-held diamond unit De Beers has, through its joint venture Namdeb Holdings, sold Elizabeth Bay Mine and its associated marine assets to Lewcor, a 100% Namibian-owned consortium. Namdeb which ceased operations in September 2018 is a joint venture with the Namibian Government. The transaction is valued at N$120 million to Namdeb, with potential upside to N$180 million.
  • AngloGlold Ashanti has reached an agreement with B2Gold, its joint venture partner at the Gramalote Project in Colombia, whereby B2Gold will fund an investment and exploration programme in 2020 to the value of $13,9 million in order to earn back to a 50:50 partnership and assume management of the project effective January 2020.
  • RDI REIT has exchanged contracts with Volksbank eG Braunschweig Wolfsburg to dispose of its Bahnhof Center situated in Altona, Hamburg in Germany for €91 million (R1,47 billion). The net proceeds will be used to reduce the revolving credit facility.
  • Tower Property Fund has accepted the offer of R97,5 million for the sale of the Medscheme office property in Rooderpoort. The disposal is in line with Tower's strategy of selling non-core and lower growth properties. The proceeds from the disposal of non-core properties will be utilised to reduce loans and acquire Tower shares if appropriate.
  • Exemplar REIT has announced that following a due diligence investigation the company will not be proceeding with the acquisition of Protea Gardens Mall. Exemplar announced in July that had signed an agreement to acquire the mall for R460,24 million subject to conducting a due diligence.

Unlisted Companies

  • JoJo Tanks, SA's supplier of water storage solutions, has acquired wastewater and sanitation specialist Calcamite. The transaction gives JoJo Tanks exposure to the domestic waste water management space. Financial details of the transaction were undisclosed.
  • Reatile Group, the black-owned investment company has through its subsidiary Reatile Renewables, concluded a transaction which sees the company take a 43% stake in juwi's solar photovoltaics operations and maintenance business. This follows the acquisition in April of a 20% in juwi Renewable Energies' solar photovoltaics engineering, procurement and construction company.
  • Frogfoot Networks, owned by Vox, has acquired the network assets and customer base of Blitz Fibre but not the company itself. The company will partner to accelerate Frogfoot's fibre rollout.

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