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: 2019-12-13 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Prosus has announced the terms of an increased offer by its wholly-owned subsidiary MIH Food Delivery to acquire the entire issued share capital of Just Eat plc. The cash offer has been increased to 740 pence per share up from 710 pence, valuing the entire issued share capital of Just Eat at £5,1 billion representing a premium of 25.6% to the closing price of 589 pence per Just Eat share on October 21, the day prior to the initial announcement.
  • Investec Property Fund through its wholly-owned subsidiary Investec Property Fund Offshore (IPFO), reached an agreement with Intervest Offices & Warehouses to acquire two logistic properties located in Belgium for €70,4 million. The purchase consideration will be funded 60% with in-country bank debt and 40% with equity provided by IPFO.
  • Bell Equipment has announced details of its BEE transaction which will result in its subsidiary companies Bell Equipment Company SA (BECSA) and Bell Equipment Sales SA (BESSA) becoming 51% black-owned. BEE parties to the transaction include the company's current BEE partner SIBI Capital, Bell Foundation Trust as well as five black company executives.
  • Advance Health has concluded the share sale and purchase agreement for Investmed to acquire a 25.1% stake in Presmed Australia for a total transaction consideration of A$5,78 million (R58,32 million). Following the transaction Advance Health will retain a 61.41% stake.
  • Allied Electronics has concluded, through its wholly owned subsidiary Altron TMT SA, the acquisition of the entire issued share capital of Gydan Investments, the holding company of Ubusha Technologies. Ubusha is the largest security provider in Africa, providing identity security solutions. The purchase consideration of a maximum R360 million equates to a 9x EBITDA.
  • Metrofile has received a conditional, non-binding offer from the Housatonic consortium to acquire the entire issued share capital of the company. Housatonic Partners is a private equity investment firm which intends to establish a new SA company for the purposes of implementing the proposed transaction. The amount payable in terms of the scheme is a cash consideration of R3.30 per share representing a 126% premium to the 30-day volume weighted average price of the Metrofile share as at September 5, 2019. There are a number of pre-conditions to a firm intention proposal.
  • Nedbank has concluded an agreement to dispose of Nedbank Malawi to Frankfurt-listed fintech and African banking group MyBucks S.A. for an undisclosed sum. The disposal follows a strategic review by Nedbank; Nedbank Malawi contributes less than 0.1% to the Group's headline earnings and total assets and its market share in Malawi is approximately 1%.
  • Stadio has announced that its subsidiary Stadio Investment, has acquired the remaining 26% stake in the Southern Business School for a total consideration of R155,5 million. In addition the immovable property known as Holding 10 Diswilmar Agricultural Holdings in Gauteng, has been acquired for a total of R28,5 million.
  • Trustco has announced the acquisition by subsidiary Legal Shield of Constantia Risk and Insurance and Conduit Ventures from Conduit Capital for a total consideration of R2 billion. Constantia offers a range of niche insurance and risk management solutions in SA while Conduit Ventures owns a number of subsidiaries that offer insurance adjacent services to Constantia as well as other insurers.
  • Investec Australia Property Fund has advised shareholders it has disposed of 757 Ann Street, Fortitude Valley Queensland to Trosa AusProp for A$94 million. The sale proceeds will be used to repay debt to reduce the company's gearing to approximately 21%.
  • Ecsponent has concluded an agreement to acquire a 45.5% stake in Crosscorn, a Botswana domiciled company whose principal activity is the production, sale and distribution of seeds. The company will purchase 26.25% from the Scipion Activity Trading Fund for a deferred cash consideration of $1,4 million (R20,72 million). The remaining 19.25% will be settled by the issue of 101,3 million Ecsponent shares.

Unlisted Companies

  • My-iMali, the local fintech startup has received an undisclosed investment from Crossfin to grow its digital wallet platform. The platform, which is currently, operates only locally, allows customers to carry out financial transactions without paying monthly fees and facilitates the affordable, safe and convenient payment of salaries. Future growth will come from the unlocking of opportunities across the Continent and abroad.
  • PocketJam , the Cape Town crypto startup, has received $75,000 from Swiss investment company Crypto Valley Venture Capital. The platform incentivises children to solve maths problems to earn pocket money.
  • Willis Towers Watson, a global advisory, broking and solutions company, is to acquire PE Corporate Services (PECS), a management consultancy and remuneration advisor with offices in Johannesburg and Durban. The acquisition is in line with Willis Towers Watson's strategy to expand in Africa. The transactions financial details were undisclosed.
  • GotBot, a South African artificial intelligence startup providing social commerce and customer experience solutions, has a raised R2,5 million funding round from venture capital firm CapaciTech to accelerate new developments and expansion plans. The platform enables clients to easily communicate with customers through Facebook Messenger, Twitter, WeChat, Skype, SMS and web chat conversations.
  • ONOMO Hotels, has acquired BON Hotels, a South African chain to create a pan-African hospitality player. The acquisition will see the group with exposure in 15 countries. Financial details were undisclosed.

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