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

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

Published Date: 2020-08-21 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Sanlam has announced the proposed sale, to African Rainbow Capital's 50.1% subsidiary African Rainbow Capital Financial Services (ARCFS), of a 25% stake in NewCo which will hold 100% of Sanlam Investment Holdings (SIH). SIH holds Sanlam's third-party asset management businesses in South Africa (excluding businesses conducted by Sanlam Private Wealth and Sanlam Specialised Finance division). ARCFS will purchase the stake for R815,2 million which will be settled, in part, using a portion of the preference share facility which was approved by shareholders in 2018 and made available to Ubuntu-Botho Investments of which African Rainbow Capital is a subsidiary. The transaction will result in a combined direct and indirect black economic interest in SIH in excess of 51% in terms of the Amended Financial Sector Code.
  • AngloGold Ashanti has exercised 5,036,250 share purchase warrants with a strike price of C$0.85 investing a further C$5 million in Canadian miner Pure Gold Mining. The latest investment increases its stake to 16%.
  • Tiger Brands has, through its wholly-owned subsidiary Tiger Consumer Brands, entered into two separate agreements to dispose of its value-added meat products business units. The abattoir business at Olifantsfontein has been disposed of to Molare, as a going concern, for R100 million. An additional R13 million will be paid for inventories and c.R4 million for the consumable stores inventory. Tiger Brand's meat processing businesses in Germiston, Polokwane and Pretoria have been sold to Country Bird subsidiary, Silver Blade Abattoir, for R153 million plus a further R158 million for all the inventories located at the meat processing businesses.
  • Afrimat has entered into a sale of shares agreement with ArcelorMittal South Africa and other shareholders for the purchase of a 100% stake in Coza Mining in a transaction valued at R300 million. Coza's principal activities are exploring and prospecting for iron ore and manganese in the Northern Cape. ArcelorMittal will dispose of its 25% stake which it holds indirectly through Oakwood Trading 21 for R54,15 million plus and outstanding loan of R81,6 million. The R135,75 million will be settled in three cash tranches. The acquisition is part of Afrimat's bulk commodities growth strategy and secures high-quality iron ore close to its Demaneng operation.
  • South32 has agreed to divest of its stake in Tasmanian Electro Metallurgical Company (TEMCO) to Sanjeev Gupta's GFG Alliance. The stake is held through Samancor Manganese joint venture which is managed and 60% owned by South32. The transaction excluded the joint venture's South African manganese alloy smelter Metalloys which has been placed under care and maintenance.

Unlisted Companies

  • Syngenta Group a Swiss-based research and development seeds company specialising in cereals, has acquired Sensako, a local seeds company engaged in the breeding and the commercialisation of agronomic crops. Financial details were undisclosed.
  • Southstone Minerals a Canadian junior mining company, is to acquire a prospecting right covering the Farm Panfontein 58 HO alluvial diamond property east of Schweizer Reneke in the Northwest Province. The rights will be acquired for R2,5 million.
  • Counterpoint Asset Management headquartered in Cape Town, has acquired Bridge Fund Managers to form a diversified, multi-strategy investment management company. This is the second acquisition in 2020 by Counterpoint, having merged with RECM earlier in the year. The combined businesses will have R12 billion in assets under management.
  • LightWare the local technology company in autonomous navigation and collision-avoidance application for LiDar technology, has secured $1,5 million from private equity firm Sanari Capital. The investment will be used to further its advances in utilising and providing a service of LiDAR technology.

DealMakers is SA's M&A publication.
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