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: 2021-10-22 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Dipula Income Fund has announced a series of transactions with Resilient REIT, which will see Dipula optimise its capital structure. In terms of the transactions, Dipula will acquire from Resilient a 50% stake in the Circus Triangle shopping centre situated in the Eastern Cape for R404,5 million which will be settle with the issue of Dipula B shares. Dipula will also undertake an equity raise of R595,5 million which will be underwritten by Resilient. These funds will be used to buyback A shares on a voluntary basis. Dipula shareholders will have the option of cash or to swap A shares at a ratio of 2.2 B shares per A share held.
  • Metrofile entered into an agreement to acquire, from founding shareholders, a 70% stake in IronTree Internet Services. The remaining 30% will be purchased in 2024. The total consideration payable for a 100% stake will be a minimum of R80 million and a maximum consideration of R140 million. An upfront cash payment of R48,92 mill will be paid for the 70% stake with a top up payment of a maximum of R12,28 million payable if certain financial criteria are met by end-February 2022. While strengthening Metrofile's core capabilities in the virtual storage and digital risk management space, IronTree will provide access to products in high growth segments such as cyber security and digital compliance.
  • Irongate announced it had received an "unsolicited, highly conditional and indicative non-binding proposal" from ASX-listed 360 Capital Group and 360 Capital REIT to acquire all of the stapled securities in Irongate not already held. The price offered is A$1.6047 (R17,39) per security. The price is the headline price of A$1.65 less the anticipated distribution of A$0.0453 per IAP security for the half year ended September 2021.
  • BHP subsidiary BHP Lonsdale Investments, has increased its all-cash offer to acquire the outstanding shares in Canadian miner Noront Resources. The new offer of C$0.75 per share represents a premium of 36% on its previous offer of C$0.55 per share. The offer is at a 7% premium to competing offer by Wyloo Metals. 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.
  • Omnia is to dispose of an 81% stake in Umongo Petroleum to Azelis subsidiary Orkila South Africa. An option agreement for the remaining 9% stake has been granted by Omnia for a period of two years. Umongo is no longer considered core to Omnia's strategy, offering little synergistic benefits to the group.
  • RMB Holdings has advised that it has considered the approaches received from Brightbridge Real Estate and Fledge Capital, in relation to the acquisition of the greater part of the property interests of RMH and are of the view that neither are in the best interests of RMH nor its shareholders.
  • Mediclinic subsidiary Mediclinic Southern Africa has lost its appeal against the Competition Commission's ruling to block the merger between Mediclinic Southern Africa and Matlosana Medical Health Services (MMHS). The Competition Commission said the merger would result in the falling away of lower tariffs provided to uninsured patients at MMHS hospitals. The deal was initially announced in 2016.

Unlisted Companies

  • Kagiso Capital, a South African investment holding company, has acquired the Open Learning Group (OLG) for an undisclosed sum. OLG is a private Higher Education institution specialising in distance learning educational programmes. The acquisition will provide Kagiso Capital with a solid platform to expand its value offering within the broader education landscape.
  • Brayfoil Technologies, a clean energy-tech startup, has secured undisclosed funding from Katapult Ocean and will participate in the Katapult Ocean accelerator programme.

DealMakers is SA's M&A publication.

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