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: 2020-05-29 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Unicorn Capital Partners has advised it has received a non-binding expression of interest from Afrimat in respect of a possible transaction to acquire the entire issued share capital of the company not already held. Afrimat has, on a confidential basis, obtained irrevocable undertakings from Unicorn shareholders holding c. 57% of the issued share capital of the company to vote in favour of the scheme should an offer be made. Afrimat proposes to acquire the shares at a ratio of 1 new Afrimat share for every 280 UCP shares held, with no cash alternative.
  • Atlantic Leaf Properties has entered into an implementation agreement with South Downs Investment LP, a wholly-owned subsidiary of investment funds managed by NYSE-listed Apollo, whereby the parties have agreed the terms of a recommended cash acquisition of the company for an aggregate cash consideration of c. £152 million. Each shareholder will be entitled to receive 80.5 pence per scheme share and 4.5 pence per Atlantic Leaf share for May 2020 distribution. Shareholders holding in aggregate of 38.41% of the issued share capital of the company have furnished irrevocable undertakings to vote in favour of the scheme. The completion of the acquisition is expected around August 17, 2020.
  • Sasfin has received an unsolicited, conditional non-binding offer for its entire minority interest in Efficient Group at a valuation of R5.60 per Efficient share valuing the investment at R146,3 million.
  • Vukile Property Fund which directly and indirectly holds in aggregate 65,958,606 shares (34.9% stake) in Atlantic Leaf has undertaken to dispose of its stake to South Downs Investment LP. The proposed transaction is in line with the company's stated strategy of exiting its non-core investments. The aggregate proceeds to be received from the disposal amounts to £53,1 million excluding the May 2020 distribution of £2,97 million.
  • Metrofile has, in line with its strategic review to dispose of non-core, non-scalable and underperforming operations, disposed of its 60% shareholding in Metrofile Zambia but has retained the Metrofile brand there. No financial details were disclosed.
  • AngloGold Ashanti has completed the purchase of an option on the Silicon gold project in Nevada, with a total payment of $3 million. Renaissance Gold will retain a 1% net smelter royalty within a define area of interest covering approximately 15,000 acres.

Unlisted Companies

  • RunwaySale, a Cape-based e-commerce fashion retailer, has received R100 million in investment from international private equity firm SPEAR Capital. The fashion retailer hosts some 300 high-end fashion brands to a community of shoppers. The investment will be utilised to drive all-round growth across marketing, stock and production sectors.
  • Inclusivity Solutions has secured a $1,3 million investment in the second tranche of its Series-A round. Investors in the Cape Town-based insurtech startup were Goodwell Investments, SA Umkhathi Wethu Ventures (UW Ventures) in partnership with Allan Gray, and fintech MFS Africa.
  • Syafunda a local edtech startup, has received a R2,5 million investment from Edge Growth. The investment will enable Syafunda to scale its platform for online learning and cover the development of its new online bookstore which will allow students to rent digital copies of textbooks.
  • Wyzetalk, a local startup that helps connect large organisations with their frontline employees through its software solution has sealed a significant Euro investment from Dutch investment company CNBB Venture Partners. Wyzetalk will use the funds and CNBB's expertise to grow its European footprint.

DealMakers is SA's M&A publication.

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