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: 2020-10-23 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • African Oxygen has received from Linde, its American-German, UK-domiciled multinational chemical parent, an offer to acquire the remaining shares in the company from minority shareholders. The offer of R21.18 per share represents a premium of 23% to the 30-day volume weighted average price of R17.21 traded on 15 October. A standby offer by way of a conditional general offer on the same terms has been put in place should the scheme prove unsuccessful. A special dividend to the value of R1,18 billion will be declared subject to the implementation of the scheme or standby offer. The company will be delisted from the JSE and the Namibian Stock Exchange. Linde had already received support from Afrox shareholders who hold c.63.5 % of the shares.
  • Stor-Age Property REIT has entered into a joint venture with the Moorfield Group to develop a portfolio of self-storage assets focused on London and the South East with an initial value of c.£50 million with the potential to increase to £100 million. Equity capital contributions will be in the ratio of 75.1%:24.9% (Moorfield:Stor-Age). The newly developed properties will be managed by Storage King which will have a pre-emptive right to acquire all newly developed assets.
  • Consolidated Infrastructure Group via its subsidiary CIGenCo SA, entered into two share sale agreements with the Mergence Namibia Infrastructure Fund Trust to dispose of a 49% stake in each of Ejuva One Solar Energy and EjuvaTwo Solar Energy for an aggregate consideration of a minimum of N$62,5 million. The net proceeds will be utilised to meet the group's general financial obligations.
  • Momentum Metropolitan has proposed a BEE transaction which will see a newly established Momentum Metropolitan iSabelo Trust acquire and hold 44,92 million MMH shares representing a 3% stake in the company for distribution to eligible employees. Approximately 26,9 million shares will come from treasury and 18 million will be bought on the open market. The deal will be funded by issuing preference shares through a special-purpose vehicle to Momentum and Absa for as much as R700 million and R350 million respectively.
  • Omnia has agreed to dispose of its Oro Agri business to Rovensa - a Europe-based business controlled by private equity funds Bridgepoint and Partners Group. Oro Agri owns and operates in-house production and R&D facilities in SA, Brazil, the US and Europe. The base purchase price of $146,9 million is payable to Omnia and the company will receive a further $3,07 million and €2,9 million owed to it by Oro Agri. The funds will be used to repay existing core term debt and existing interest rate hedges resulting in a net cash position after the debt repayments. The company has received support from shareholders holding 59.8% of Omnia's equity.
  • Allied Electronics updated shareholders on the potential demerger and separate listing of UK subsidiary Bytes Technology in a move to unlock value for shareholders. The potential demerger would see a newly established holding company Bytes Technology Group take a primary listing on the LSE, and inward secondary listing on the JSE and a distribution to Altron shareholders. The company advised it was in the process of finalising the terms of the share purchase agreement for the transaction and would, in due course, make a further announcement which would include the financial effects of the proposed transaction.
  • Pick n Pay Stores is to acquire buy on-demand online grocery delivery firm Bottles as it looks to strengthen its e-commerce business. Financial details of the transaction were undisclosed.
  • Stefanutti Stocks has entered into an agreement with Clayville Nutritionals to dispose of four properties in Clayville for a purchase consideration of R30 million. Stefanutti will use the proceeds to acquire another more suitable property and to fund Group working capital requirements. The transaction constitutes a Category 1 transaction and accordingly requires shareholder approval.

Unlisted Companies

  • SixThirty, the US global venture capital firm focused on investing in late seed stage fintech companies, has invested in Cape Town-based insurtech company Click2Sure. The multi-million rand investment will enable Click2Sure to further develop its product offering to take advantage of the low penetration of digital distribution in the insurance industry.

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