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: 2020-07-31 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Sasol has signed an exclusive negotiation agreement with Air Liquide's South African subsidiary Air Liquide Large Industries South Africa for the sale of assets located in Secunda. The deal, proceeds of which will total c.R8,5 billion will see the disposal of 16 air separation units with a capacity of up to 42,000 tons per day providing oxygen for Sasol's fuels and chemical production processes in Secunda.
  • Grand Parade Investments has, as announced in May, renegotiated the terms of its agreement to sell its 95.36% stake in Burger King (South Africa) and the Grand Foods Meat Plant to private equity firm ECP Africa Fund IV LLC. The impact of COVID-19 on operations has effectively wiped R100 million from the transaction value which has reduced the enterprise value for the transactions to R593 million from the offer announced in February. The revised deal will allow the company to reduce gearing and return capital to shareholders through a special dividend.
  • Woolworths has successfully disposed of Bourke Street Menswear store for A$121 million. The net disposal proceeds will be applied toward the repayment of debt facilities.
  • Pembury Lifestyle which was suspended in February, has accepted an offer from Verityhurst in terms of which Verityhurst will subscribe for 180 million ordinary Pembury shares for cash at a subscription price of 10.5 cents per share for a total consideration of R18,9 million. The funds will be used to settle certain key creditors and to inject working capital into the company; the amounts will be recorded as a loan amount. In addition, subsidiary PLG Retirement Villages will be disposed of to AR McLachlan for R1.00. PLG Retirement Villages is reflected in the company's results as discontinuing operations currently incurring monthly losses and liabilities in excess of R20 million. The intention is to rebrand the PLG Schools in the near term to Verityhurst Academies and to later change the name of the company.
  • Mondi has through its subsidiary Mondi Paper Bags, acquired two paper bag lines from Egyptian cement producers Hewan Cement Co and InterCement Sacs. The production lines will increase Mondi's capacity by between 60 million and 80 million bags annually, strengthening its position in the Middle Eastern bag market. Financial details were undisclosed.

DealMakers is SA's M&A publication.

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