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: 2020-09-11 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Transaction Capital's deal to acquire a 49.9% stake in WeBuyCars follows the ruling by the Competition Tribunal in March this year prohibiting Naspers' subsidiary OLX from acquiring a 60% interest for R1,4 billion. Transaction Capital will, based on an enterprise value of R3,69 billion, pay a maximum of R1.84 billion for its stake. The deal was struck with founders of WeBuyCars, Faan and Dirk van der Walt and Fledge Capital. Payment of R1.47 billion will be made in cash and the remainder by the issue of 16,467,000 preference shares in Transaction Capital at a price of R20 per share, for an aggregate value of R329,3 million. On the first anniversary of the effective date of the transaction, a further R40 million will be paid - R20 million in cash, and a further issue of new shares in Transaction Capital worth R20 million.
  • Aspen Pharmacare via its Mauritius subsidiary Aspen Global, has concluded an agreement in terms of which Mylan Ireland will acquire the commercialisation rights and related intellectual property relating to Aspen's Thrombosis Business in Europe for a purchase consideration of €641,9 million. Mylan will make un upfront cash payment of €263,2 million and a deferred cash payment, payable on June 25, 2021, of €378,7 million. The proceeds of the transaction will be used to reduce the group's debt. The deal is a category 2 transaction in terms of the JSE Listing Requirements.
  • Naspers and Rand Merchant Investment have disposed of their stakes in Luno, the crypto-currency exchange, to Digital Currency Group, an international group which invests in blockchain companies globally. Financial details were undisclosed.
  • Capital & Counties Properties has exchanged contracts to sell the Wellington block, a freehold island site located on the south east corner of Covent Garden comprising six separate properties. The sale to the Portfolio Club, a joint venture between APG and London Central Portfolio has a transaction value of £76,5 million.
  • Kibo Energy via its 100% UK subsidiary Sloane Developments, has agreed to a share purchase agreement to acquire a 9MW flexible gas power project for £1,7 million. The acquisition is in line with its strategy to acquire and develop a portfolio of small-scale flexible power generation assets.
  • Arrowhead Properties, through its subsidiary Cumulative Properties, has disposed of the rental enterprise Jane Furse Crossing in Limpopo for a total consideration of R174 million. The proceeds of the disposal will be used to reduce debt.
  • Bell Equipment has issued a cautionary announcement advising shareholders that IA Bell, a 38.7% shareholder in the company, and John Deere, a 31.4% shareholder, have signed a non-binding MOU in respect of a possible purchase by IA Bell of the John Deere stake.

Unlisted Companies

  • Tennant Group, a local financial services company, has concluded a transaction with BEE partner KDI Capital Partners, part of the KDI Group. The deal, the financial details of which were undisclosed, will see Tennant become majority black-owned.
  • Mitochondria Energy Company, a sustainable energy services firm, has received R50 million in investment from the Industrial Development Corporation (R30,8 million) and the Development Bank of Southern Africa (R20 million). The funds will enable the completion of the bankable feasibility study of a stationary fuel cell energy solution.

DealMakers is SA's M&A publication.
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