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: 2021-06-04 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Prosus has concluded an agreement to acquire Stack Overflow, a knowledge-sharing platform for the global community of developers and technologists for $1,8 billion. Prosus will help accelerate Stack Overflow's growth ambitions with a particular focus on reaching a wider international community while further scaling the company's products.
  • Datatec subsidiary Logicalis, has acquired Siticom, a 5G integrator based in Germany for an undisclosed sum. The acquisition will give Logicalis a platform to establish a pan-European centre-of-expertise in developing advanced networking integration capabilities around 5G and evolving Cloud orchestrated network interoperability.
  • Jasco Electronics has entered into an agreement with Reach Group to dispose of the business of professional ICT infrastructure management services in the Property Technology Management division for a total transaction consideration of R7,5 million. Jasco as technology partner, will enter into strategic agreements with the Reach Group and WiCloud who in turn will provide marketing and lease administration services to Jasco.
  • Deneb Investments, through its wholly-owned subsidiary Sargas, has entered into an agreement with The Lansdowne Trust, in terms of which Deneb will dispose of the industrial properties situated in KwaZulu Natal for a total consideration of R55 million.
  • Invicta has, through a series of structured steps, disposed of an effective 51.19% in the Kian Ann Group (KAG) to entities controlled by Zou Jian Liang and associates (ZOU) of 48.81% and to Loy Soo Chew (LSC) of 2.38%. The agreement allows share subscriptions in KAG by IAH and ZOU, to facilitate an increase of KAG's 27.6% stake in Kunshan Kensetsu Buhin (KKB) and its 50.01% stake in Modesty Investment Holding (MIH) to 100% respectively. The transaction will result in Invicta reducing its shareholding in Kian Ann from 100% to 48.81%.
  • Shoprite subsidiary Shoprite International has successfully concluded the sale of its 100% shareholding in Retail Supermarkets Nigeria. The disposal was to Ketron Investments, a subsidiary of Persianas Investment, which will, in terms of the agreement, continue to use the Shoprite brand as well as receive administration and technical support from the Shoprite Group for an initial period of five years. The disposal consideration was not disclosed .
  • Cashbuild has warned shareholders that the Competition Commission has recommended to the Competition Tribunal not to allow the acquisition by Cashbuild of Pepkor's The Building Company for R1 billion as it would result in the creation in South Africa of the single-largest retailer of building materials, hardware and related products.
  • Grand Parade Investments' planned disposal of Burger King in SA to international private equity fund Emerging Capital Partners, has been prohibited by the Competition Commission. The Commission cited the deal's failure to promote a greater spread of ownership particularly in the HDP space. The parties are considering their options and will advise shareholders in due course.

Unlisted Companies

  • Betfred, the UK bookmaker who, last year bid for the racing assets of Phumelela Gaming and Leisure along with successful bidder Mary Oppenheimer Daughters, has acquired 100% of the shares in Betting World out of the company's business rescue process. The selling price of R120 million is still subject to final adjustment.
  • Goodleaf and Highlands Investments have merged in a deal valued at c.US$50 million to form the largest vertically integrated cannabis operation in Africa. Under the terms of the deal, the new entity to be known as Goodleaf and Highlands Investments will be owned 65% by Goodleaf with Highlands Investments owing the remaining stake.
  • South Africa Reserve Bank is considering its exit options from its 50% shareholding in African Bank. The stake was acquired in 2016 as part of the restructuring of African Bank Ltd.
  • Afarak Group, a UK company is to sell its Ilitha plant, assets and mining rights, located in the Bushveld Complex, to local company WMA Chrome Mining and WMA Minmet Processing for c.R400 million.
  • Ata Fund I, the subsidiary of a private equity fund managed by Ata Capital, has acquired a 33.3% stake in Acrux Sorting Technology, a subsidiary of commodity resource and technology specialists Acrux Resources. The investment will enable AST to make a positive contribution through ESG and sustainability impact in the mining sector.

DealMakers is SA's M&A publication.

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