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: 2020-10-09 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • FirstRand, acting through its Rand Merchant Bank Division, and Redefine Properties are to purchase Mall of the South in Gauteng from Zenprop Property following the exercise of a put option. The property will be acquired by a special purpose vehicle PropCo SPV, 80% owned by RMB Investment Advisory (RMBIA) and 20% by Redefine, for an initial purchase price of R1,76 billion. Propco SPV will be jointly controlled by RMBIA and Redefine. RMB will make a facility available to PropCo SPV for the purposes of funding the purchase consideration up to a maximum of R1,83 billion. RMB retains the right to require Redefine to acquire the shares and loan in Propco SPV.
  • Sasfin subsidiary, Sasfin Private Wealth, has accepted an offer by Summit Private Equity to acquire its 21.1% stake in Efficient Group for a total transaction value of R146,26 million. In addition, the private equity company has acquired a further 16.29% stake in Efficient from two exiting shareholders increasing its total stake in Efficient to 37.39%.
  • Tsogo Sun Hotels and Hospitality Property Fund have agreed on the terms and conditions of an offer by Tsogo Sun to acquire the remaining 24.6% stake in Hospitality (excluding those held by subsidiaries and treasury shares) in a ratio of 1.77 Tsogo Sun shares per Hospitality share acquired. If the R373 million offer is successful, Hospitality will be delisted from the JSE.
  • BHP is to acquire an additional 28% working interest in Shenzi, a six-lease development in the deepwater Gulf of Mexico from joint venture partner Hess. The purchase price agreed is $505 million, taking BHP's working interest to 72%. Repsol holds the remaining 28%. The transaction is consistent with BHP's strategy of targeting counter-cyclical acquisitions in high-quality producing assets.
  • Sasol has announced the formation of a joint venture following the sale of a 50% stake in its LCCP Base Chemicals Business and a portion of the Lake Charles property, to multinational chemical company LyondellBasell for $2 billion. The joint venture, to be named Louisiana Integrated PolyEthylene will be operated by LyondellBasell. Sasol will retain ownership of the US Performance Chemicals Business, the legacy base chemicals assets at Lake Charles, and the remainder of the Lake Charles property. The transaction which is expected to be completed by year-end will deliver immediate strategic and financial benefits with Sasol continuing to benefit from the ongoing value creation from the LCCP Base Chemicals Business, including the upside when the macroeconomic environment improves.
  • Premier Fishing and Brands has proposed a broad-based black economic empowerment transaction for its subsidiary Premier Fishing SA (PFSA). The vendor finance transaction will transfer a 20% stake in PFSA to the employee share trust and 10% to a broad based empowerment consortium via a special purpose vehicle Laudeware.
  • Jasco Electronics has exercised its put option, as agreed with Myriad Capital communications, to dispose of its entire 67.7% shareholding in Reflex Solutions for R72,86 million. The decision to sell its stake follows the dilution of Jasco's interest in Reflex announced in September. The decision to exit the business is in line with Jasco's organisational restructure and the plan in reduction of debt. The put option agreement provides Jasco with a call option to restore its interest in Reflex to a majority interest of 51% if Myriad fails to pay the put option price.
  • Nutritional has entered into a new agreement with The Wellness Trust 29 to acquire a 100% shareholding in Ukuseka which holds various licenses in Lesotho, Zimbabwe and Swaziland for the cultivation, harvesting, manufacturing, distribution, importing and exporting of cannabis. The 2019 deal lapsed due to COVID-19 delays resulting in non-fulfilment of certain of the conditions precedent. The new deal valued at R65 million (down from the previous transaction value of R140 million) will be financed by way of a combination of cash (R35 million) and the issue of 2 billion shares at 1.5 cents per share.

Unlisted Companies

  • Praesignis, a data management, business intelligence and visual analytics firm, has announced the acquisition via Praesignis Coastal of Résoudre, a local player in the data consulting space. Résoudre aims to address the unemployment challenge in SA creating skills development hubs, and this will be made more accessible by partnering with Paesignis. Financial details were not disclosed.
  • Vantage Capital, an Africa-focused fund manager based in South Africa, has made a $28 million equity investment to acquire a minority shareholding in the Cliniques Internationales du Maroc Group (CIM Santé Group), a Moroccan healthcare company. The funding will be used to part-fund the extension of the existing in facilities in Marrakech and the opening of new clinics in Tangier and Casablanca. The company also plans to expand its portfolio further and enter new markets in the rest of Africa.
  • Inospace, an operator of branded business parks, has acquired an industrial site in Parow East comprising four freehold buildings providing retail-style warehouses. The property will be acquired at a capital value of R4,785 per square meter and a net initial yield of 10%.

DealMakers is SA's M&A publication.

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