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: 2020-08-07 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Rand Merchant Investment as part of a consortium, has made a cash offer to Hastings Group shareholders. Main Street 1353, the entity jointly held by RMI and OUTsurance, will make an offer to acquire a top-up stake of 0.3% in Hastings for an amount of £5,33 million. Following completion of the offer Main Street will hold a 30% stake in the UK motor insurer with the option to acquire a further 10% in the company within 18 months of the completion of the offer at the price per Hastings share equal to the offer price.
  • Hammerson has confirmed it is to sell its 50% stake in VIA Outlets to joint venture partner APG Asset Management for €301 million in an effort the reduce debt.
  • RMB Holdings' private equity specialist RMB Corvest, has entered into a strategic partnership with Mark Bowman to acquire a stake in Switch, the energy drink business. Financial details were undisclosed.
  • Datatec subsidiary Logicalis Latin America, has acquired a 30% stake in Kumulus, a company based in Brazil specialising in Microsoft cloud and data managed services. Financial details were undisclosed.
  • Cashbuild is to acquire from Pepkor The Building Company (TBC) for a purchase consideration of R1,07 billion. TBC offers a portfolio of 13 well-known brands across its three divisions - retail, wholesale and specialised divisions predominantly based in SA but with a presence in Namibia, Botswana and Zambia. The transaction increases Cashbuild's retail store footprint but also enables it to access the building contractors segment of the market. Pepkor will use the funds to reduce debt.
  • Rand Merchant Investments via its fintech investment AlphaCode has backed local healthtech startup Guidepost with an undisclosed investment.
  • Stenprop the UK multi-let industrial (MLI) property company, has acquired St Andrews Estate a MLI estate of nine high quality warehouse units near Glasgow City Centre. The £5,5 million acquisition price reflects a net initial yield of 7.3% and a capital value of £75 per square foot.
  • Imbalie Beauty has disposed of Imbalie Innovvation to Siswe Investments for R690,651. The property owned by Innovvation is valued at R13,5 million but due to large debt in Innovation, the transaction value is reduced. Siswe is owned by Holistics Remedies, a material shareholder in Imbalie.
  • Trematon Capital Investments has sold, via its 60% held subsidiary ARIA Property Group, a 50% stake in a convenience retail centre situated in Gansbaai, Caledon in the Western Cape. The purchase price for the stake is R54,75 million.
  • Ecsponent has concluded an agreement with Zambian company Xtenda Finance to sell its 25% stake in Ecsponent Financial Services (MyBucks Zambia) for a total cash consideration of US$1,5 million. The disposal is in line with Ecsponent's restructuring of its wider group which aim to reduce debt and focus on consolidating it private equity portfolio.

Unlisted Companies

  • Link Seed, Klein Karoo Seed Marketing and Seed Co South Africa have together formed a joint venture company to be known as Limagrain Zaad South Africa, which will utilize each companies skills to provide multi-crop alternatives in South Africa, Lesotho, eSwatini and Namibia.
  • Malani Padayachee & Associates, a black-owned structural engineering consulting firm and Motseng Women Investments have acquired the engineering entity of Mott MacDonald Africa. Financial details were undisclosed.

DealMakers is SA's M&A publication.

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