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: 2019-11-29 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Anglo American has announced plans to sell a 12% stake in the Grosvenor mine in Queensland, Australia to its consortium partners in its integrated metallurgical coal operations at Moranbah North. The consortium currently holds a 12% stake in Moranbah North which provides processing infrastructure to the Grosvenor mine where numerous bottle necking, expansion and product blending options offer considerable cost, productivity and margin benefits for the integrated operation. Anglo will receive cash proceeds of $141 million (R2,07 billion) in respect of the sale of the 12% minority interest.
  • EPE Capital Partners has entered into an agreement with Brait SE which will see Ethos Capital and Ethos Fund VII committing to invest R1,35 billion in Brait. The investment holding company will, through an equity capital raise of up to R5,6 billion, R5,25 billion of which will be via a rights issue, use the funds to help refinance and restructure its debt. EPE's investment will be made possible by taking up part of Titan's R1 billion portion of the Brait rights issue and an additional R350 million from other Brait shareholders who opt not to follow their rights. Should this not be an option then Brait will undertake a specific issue of new shares. Ethos Fund VII will contribute R750 million and Ethos Capital R600 million. For Ethos to meet its commitment to Brait, Ethos Capital will undertake a renounceable rights offer to raise equity of up to R750 million.
  • Steinhoff International has announced the B-BBEE partner for it remaining 25.1% stake in Unitrans Motor Holdings as Kapela Holdings, a local majority black owned investment group. Earlier this year, Steinhoff announced the sale of 74.9% stake in the car dealership to CFAO for an undisclosed sum. Unitrans will be rebranded CFAO Motors.
  • Vukile Property Fund has concluded an agreement to dispose of all its remaining nine non-retail property assets to Mbako Property Fund, a wholly owned subsidiary of AWCA Investment Holdings for R700 million payable in cash. Mbako is a new black-women-owned and managed unlisted property fund. Mbako will be managed by a new joint venture between AIH and Vukile and will in a four-year programme transfer property expertise from Vukile to Mbako, allowing it to transition into a fully independent fund.
  • Advanced Health has informed shareholders that it has reached advanced stages of negotiations with Investmed to dispose of a 25.1% stake in Presmed Australia for a total consideration of A$5,78 million (R57,66 million).
  • Choppies Enterprises has, via its subsidiary Choppies Supermarkets SA, signed an agreement with Kind Investments to dispose of its South African operations. Financial details were undisclosed.
  • Remgro has entered into a sale agreement to dispose of 13% of its 50% stake in the Blue Bulls to Patrice Motsepe for an undisclosed sum. At the same time The Blue Bulls Rugby Union will reduce its 50% stake by 24% allowing Motsepe to hold a total interest of 37%.
  • Labat Africa has advised shareholders it has entered into two agreements to further expand its interests in Lesotho. An agreement with The Highly Creative firm will give the company an additional cannabis licence to cultivate, harvest, process and export cannabis from Lesotho to be settled through the issue of 75 million shares at R1.00 per share. In addition the company it to acquire an 80% interest in one of ZCMA's Lesotho operations for a consideration of 20 million Labat shares at R1.00 per share. Furthermore Labat has decided not to pursue the subscription for a 70% stake in Zarenka Group announced earlier this year.
  • Intu Properties plc is to dispose of Spurcefield Retail Park, located in Lisburn, Northern Ireland, to NewRiver REIT plc for £40 million (R756 million).

Unlisted Companies

  • TCapital , a private equity firm, has acquired Daily Dish, a local Cape Town meal-kit company for an undisclosed sum. The investment firm plans to merge its new acquisition with Day to Day, a Cape-based food delivery service. The merged entity will operate under the name Daily Dish utilising facilities in Cape Town and Johannesburg.
  • Coricraft with outlets in SA, Namibia and Botswana, has acquired Biggie Best for an undisclosed sum.
  • Yellow, a local startup, has closed a $725,000 raise from local and international investors. The startup sells pay-as-you-go solar power devices to African households. The funds will be used roll out devices in Uganda and Malawi.
  • SeedCo, the Zimbabwean seed producer, has partnered with Botswana company Prime SeedCo International to acquire an 80% stake in South African Alliance Foods for $1,2 million (R18 million).


Similar Stories