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: 2020-11-27 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Life Healthcare has disposed of its shares in Scanmed S.A in Poland to Abris Capital Partners, a central European private equity fund manager. The disposal consideration, which will be settle in cash, is R1,38 billion and R806 million after the settling of debt. The disposal is in line with the company's strategic objective of growing its share of revenue and earnings from non-acute sources.
  • South32 is to sell a royalty package to TSX-V-listed Elemental Royalties for $40 million in cash and $15 million via the issue of shares. The royalties consist of three gold royalties and one related non-gold royalty in Western Australia. Following the completion of the transaction, South32 will hold a 19.7% stake in Elemental. The transaction will realise a cash payment while retaining exposure to these royalties through a shareholding in Elemental.
  • Mr Price has concluded an agreement to acquire Power Fashion, a Durban-based value retailer with 170 stores across Southern Africa offering in the main apparel merchandise but also cellular products, basic household items, value cosmetics and electricity. Financial details were undisclosed.
  • Sasol has announced the disposed of its 50% stake in its US-based polyethylene business Gemini for $404 million (R6,2 billion) to joint venture partner INEOS Olefins and Polymers. The deal, the fourth major transaction undertaken by Sasol this year, seeks to cut its debt burden.
  • Conduit Capital subsidiary Snowball Wealth has disposed of 6,750,000 Calgro M3 shares for a total consideration of R14,18 million. The funds will be used to, among other things, repurchase its own shares which currently trade well below intrinsic value. Post the transaction the company will still retain a significant stake in Calgro.
  • Spear REIT is to acquire a 30% stake in Spear One, the owner of the property 2 Long Street, Cape Town for a purchase consideration of R11,5 million payable by the issue of 1,53 million shares at R7.50 per share.

Unlisted Companies

  • Kagiso Tiso , the South African private investment company, has disinvested of its 20.01% stake in Fidelity Bank Ghana to AfricInvest, a pan-African mid-cap-focused private equity firm through its two funds AfricInvest Fund IV and AfricInvest Financial Inclusion Vehicle. Financial details of the transaction were undisclosed.
  • Yebo Fresh, the Cape-based online food and household goods retailer, has raised an undisclosed sum of Series A funding from E4E amongst others. The funds will be used to strengthen the brand, expand its footprint nationally and optimise its systems and processes.
  • Xago, a local fintech business has received an investment from venture capital firm Imvelo Ventures which will be used to expand its cryptocurrency services and products into African markets.
  • BCW Africa, the Johannesburg-based communications agency, has increased its BEE status to 51% black-owned. Financial details were undisclosed.
  • Ukheshe, the South African fintech provider has agreed to acquire from Mastercard, Oltio the company that developed the digital payments platform for Masterpass, Mastercard's QR code payments service. Financial details of the transaction were not released.

DealMakers is SA's M&A publication.

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