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: 2021-11-19 | Source: DealMakers | Author: Marylou Greig

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

Exchange Listed Companies

  • Zeder Investments has entered into an agreement with funds managed by African Infrastructure Investment Managers (Old Mutual) to dispose of its 98.22% holding in The Logistics Group for an initial disposal consideration of R1,35 billion payable in cash. A further R217,91 million may be payable in earn-out payments. The disposal is in line with Zeder's value-unlock initiative which will see the majority of the disposal consideration distributed to shareholders.
  • MTN is to sell a large portion of its local tower portfolio to IHS Towers and lease them back in a deal valued at R6,4 billion. The deal does not include the active or radio components of MTN's towers, but rather includes the outsourcing of power and related services across MTN's site footprint. Proceeds will be reinvested into strategic growth initiatives. In another transaction, MTN is to exit its operations in Yemen with the transfer of its effective shareholding in MTN Yemen to Emerald International Investments.
  • Distell has announced details of a proposed deal with Heineken, which will see the Amsterdam-based brewer acquire Distell (excluding its whisky operations held in Capevin which will be unbundled to shareholders) via a South Africa headquartered company Newco in a series of interlinked transactions. Shareholders will be offered R165 per share or may opt for a share swap for unlisted shares in Newco. Heineken will make an offer of R15 per share for Capevin. Remgro which holds a 31.3% stake in Distell will vote in favour of the transaction and intends to take shares in Newco rather than accept the cash offer. Heineken will hold a minimum of 65% of Newco and the rest will be held by Distell shareholders who elect to reinvest. Of the 35%, Heineken will insure that 15% will be held by a BEE structure.
  • Grindrod has entered into a joint venture with the Maersk Group in terms of which Grindrod will dispose into the new entity its Grindrod Intermodal and Ocean Africa Container Lines divisions (excluding the Maydon Wharf multipurpose terminal for R756 million. The Maersk Group, through Safmarine will dispose of its AMP Terminal Businesses in South Africa for R360 million plus pay Grindrod R209,16 million to address the value gap. Grindrod will hold 49% of the JV and the Maersk Group the remaining 51%.
  • Spear REIT has disposed of Doubletree by Hilton in Cape Town to a consortium of entities for c.R60 million with the anticipated effective date being February 1, 2022. The disposal is line with Spear's strategy to exit its hospitality assets in the short to medium term.
  • Bowler Metcalf, via its subsidiary Bowler Plastics, has entered into a conditional binding offer to acquire Skye Plastics for an undisclosed sum. The acquisition accelerates Bowler Metcalf's expansion into the medical and agricultural packaging sectors.
  • Glencore has reached an agreement to dispose of its 100% interest in Ernest Henry Mining, a copper-gold mine in Queensland Australia, to Evolution Mining. The transaction tag is A$1 billion, with A$800 million payable to Glencore on the closing of the transaction and the remaining A$200 million payable 12 months thereafter. Evolution will enter into a copper concentration offtake agreement and separate ore tolling agreement with Glencore.

Unlisted Companies

  • VoxCroft Analytics, an open-source intelligence and risk analytics company, has raised US$2 million in Series A funding from local venture capital investment manager Knife Capital. The funds will be used to strengthen the team and scale expansion plans.
  • Glacier Lake Resources, the Canadian TSX-V listed exploration company, is to acquire a controlling stake in Stella Platinum and Greenstone Platinum which collectively control the prospecting rights for the Kalahari platinum project. Glacier will make a cash payment to African Thunder Platinum and Fanosi Holdings equal to the equivalent of 50% of the proceeds realised by Glacier from the sale of debt or equity securities, up to C$15 million.
  • Norfund, the Norwegian development finance institution, and UK Climate Investments, managed by Macquarie, have agreed to invest (c.R100 million) in a joint venture between two SA companies, H1 Holdings and Pele Green Energy, to fund its 40% participation in the development of a 700MW on shore wind portfolio in SA. The parties will invest alongside Enel Green Power.
  • Ozow, a local fintech company providing merchants and consumers with easy, fast and secure alternative payment solutions, has raised US$48 million in a Series B funding round. The investment round was led by Tencent with participation from Endeavour Catalyst and Endeavour Harvest Fund. The proceeds will enable the company to scale and expand regionally.
  • Root, a Cape-based startup providing infrastructure for the digital insurance economy, has closed a US$3 million seed funding round. The funds were raised from Invenfin, Base Capital, Savannah Fund, P1 Ventures, Luno, FireID and a group of high impact angel investors. Root intends using the capital to roll out its flexible low-code digital insurance platform to innovators in new geographies.
  • Highveld Robusteel, jointly controlled by Bonheur Ventures and Amplico Resources Management, is to acquire out of business rescue, the remaining iron and steelmaking assets of Evraz Highveld Steel & Vanadium business.
  • NFTfi, a market place where users can get a cryptocurrency loan on their NFTs and offer loans to borrowers against their NFTs, has raised in a seed round, US$5 million. Funds will be used to launch new products and roll out the platform on other blockchains.

DealMakers is SA's M&A publication.

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