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: 2021-07-30 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Imperial Logistics has announced the terms of a deal which will see the company acquire Lift Logistics, the holding company of J&J Group and Greendoor which houses the South African operations of the J&J Group from, among others, Funds managed by The Carlyle Group and Ethos Private Equity. The purchase consideration for J&J is based on the enterprise value of R4,4 billion ($300 million) and will be undertaken in three tranches. The first tranche of a 51% interest in J&J will be acquired for R988,5 million ($66,8 million), followed by a further 46.5% stake and a final stake of 2,5%, the values of which will be based on operating profit in the second and third year.The cross-border trucking business has operations in five key countries in Africa and the complimentary nature of the two businesses speaks to Imperial's 'Gateway to Africa' strategy.
  • BHP subsidiary BHP Lonsdale Investments, has made an all-cash offer to acquire the outstanding shares in Canadian miner Noront Resources for C$0.55 per share in a transaction valued at C$325 million. Noront mines nickel, copper, platinum, palladium and chromite deposits. BHP Lonsdale currently owns a 3.7% stake in Noront which is listed on the TSX Venture Exchange. The offer represents a 69% premium to the closing price prior to the offer and a 129% premium to the price on May 21, the day prior to the announcement by Wyloo of its intention to make an offer to Noront minorities.
  • Lighthouse Capital has reached agreement with Wereldhave Retail France on the acquisition of a portfolio of four French retail shopping centres located in Le Havre, Rouen and Strasbourg for a cash consideration of c. €305 million.
  • Grindrod Shipping has agreed to acquire the remaining 31.14% stake in the IVS Bulk joint venture held by Bain Capital Credit for a total purchase consideration of US$46,3 million. The consideration will be settled through a combination of cash and proceeds received from the redemption of IVS Bulk's preference shares.
  • City Lodge Hotels has announced the disposal of its East African Hotel operations to private equity firm Actis. The Kenyan assets have been sold for R140,97 million and include Fairview Hotel, City Lodge Hotel at Two Rivers and Town Lodge Upper Hill. City Lodge will receive R1 million for the disposal of its Tanzanian hotel, The City Lodge Hotel Dar es Salaam. The Kenyan and Tanzanian hotels were sold to Ukarimu and Faraja respectively - both beneficially owned by Actis.
  • Prosus via its fintech subsidiary PayU, has acquired the mobile-first open-source blockchain ecosystem CELO for an undisclosed sum. The deal will see PayU launch crypto payments, offering cryptocurrency based payment options for merchants using its platform.
  • Resilient REIT has released the results of its mandatory offer to Lighthouse Capital minority shareholders. The offer, a cash consideration of R7.13 per share, was accepted in respect of 4,117,083 Lighthouse shares, representing 0.33% of shares in issue. Following the implementation of the offer Resilient will hold 40.39% of Lighthouse shares in issue.

Unlisted Companies

  • ALPLA Group, the Austrian plastic packaging manufacturer and recycling specialist, has acquired Durban-based Verigreen Packaging, a specialist in bottles and canisters for lubricants. Financial details were undisclosed.
  • Pineapple, a Gauteng-based insurtech startup, has closed a Series A funding round raising R80 million which will be used to scale its car insurance business. Pineapple allows users to request quotes and acquire insurance within minutes via the app or website.
  • Yoco, the local payments and software startup, has raised US$83 million in Series C funding from Dragoneer Investment Group, Breyer Capital, HOF Capital and 4DX Ventures among others. The funds will be used to accelerate the development of its financial ecosystem for small businesses and to expand its footprint in South Africa.
  • Bright Minerals, has received conditional approval from the Competition Commission to acquire ferrochrome producer Mogale. The deal will see Cheetah Chrome, a subsidiary of the Chinese ferrochrome miner, acquire Mogale which was placed in business rescue in May 2020.
  • Tana Africa Capital, a private equity firm jointly owned by Temasek and the South African Oppenheimer family, is to take a minority stake in Africa Protein, the holding company of Nairobi-based meat producer Quality Meat Packers and Anirita Poultry Farms. The group engages in all processes from procuring to breeding to processing to packaging, distribution, marketing and retailing of animal-sourced meats. The aim is to expand the group's footprint in its export markets.

DealMakers is SA's M&A publication.

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