Exchange-Listed Companies
In June, Sanlam Life (Sanlam) acquired a 60% stake in MultiChoice’s insurance business – NMS Insurance Services (NMSIS) – for an upfront payment of R1,2 billion and an earn-out payment of up to R1,5 billion. The NMSIS shares comprise two separate classes of shares, the Ordinary Shares and the AI Ordinary Shares, which entitles the holder to distributions related to the life insurance products. Santam has entered into an agreement to acquire from Sanlam Life its 60% interest in the A1 Ordinary Shares in NMSIS for an initial R925 million in cash with a potential deferred earn-out payment of R1,5 billion in respect of both the A1 Ordinary Shares and the Ordinary Shares.
Old Mutual Private Equity (Old Mutual) has concluded a deal with UK retail sport group Frasers plc, which trades predominantly under the Sports Direct brand. OMPE along with management will exit its investment in Holdsport for an undisclosed sum. Holdsport has a total of 88 stores across South Africa and Namibia and a rapidly growing e-commerce offering. Holdsport’s network will act as a platform to expand Sports Direct across the region. Financial details were undisclosed.
Anglo American has agreed to sell its remaining steelmaking coal portfolio in Australia to Peabody Energy for up to US$3,8 billion. The purchase consideration comprises an upfront cash consideration of $2,05 billion at completion, $725 million deferred over the next four years and a potential $550 million in a price-linked earnout. The deal follows Anglo’s recently announced disposal of its stake in Jellinbah for c.$1,1 billion.
Pamstad, a Botswanan subsidiary of CA Sales, has received the Competition Authority of Kenya’s approval to acquire Trapin, a Kenyan company involved in trade marketing, branding services and distribution of various FMCGs. The proposed transaction will, according to the parties, provide growth capital to the target to expand its business operations in Kenya and Africa.
Rex Trueform has increased its stake in Belper Investments, an unlisted property fund focused on the acquisition, ownership and management of industrial properties within the Western Cape. The Group has acquired a 6.99% stake for R4,7 million increasing its shareholding in Belper to 79.02%.
Equites International, a UK subsidiary of Equites Property Fund, has concluded and agreement with Amazon UK Services to dispose of a distribution centre in Peterborough for a cash consideration of £38,5 million. This equates to a transaction yield of 5.17%. The property is currently let to Amazon with 12 years remaining on the lease.
Suspended Conduit Capital has disposed of its 51% interest in Century 21, South Africa for R7,2 million to other shareholders of Century 21. Operating under an international franchise agreement with Realogy Group, Century 21 is a South African property agency franchisor with 51 franchises.
MAS plc has issued a cautionary note to shareholders advising that it has entered into negotiations with Prime Kapital regarding the acquisition by MAS of Prime Kapital’s 60% interest in PKM Development (DJV). This would give MAS full ownership of the commercial assets in the DJV. If concluded, the acquisition will effectively terminate the DJV arrangements, with MAS and Prime Kapital continuing their respective investment strategies independently.
In its interim results, Deneb Investments disclosed that it had acquired an 80% shareholding in Puretech, a company based in the UK for a purchase price of £800,000. The sellers have the option to sell the retained 20% before end-December 2029.
Zeda has disposed of its interest in Vuswa Fleet Services for proceeds amounting to R2,3 million.
The suspensive conditions in the agreement between Accelerate Property Fund, Fourways Mall Shopping Centre developer Azrapart and MN Georgiou in respect of claims by Accelerate against the parties, were not fulfilled on time. The parties will engage to conclude a new agreement on similar lines.
Unlisted Companies
Harith InfraCo, a strategic partnership between Harith General Partners, Zungu Investments and Mergence Investment Managers, has acquired stakes in a range of energy, digital infrastructure and transport assets from the Pan African Infrastructure Development Fund (PAIDF). Stakes include shareholdings in assets such as Lanseria International Airport and the Kelvin Power Station. The assets were acquired for an aggregate $360 million (R6,5 billion).
DealMakers is SA’s quarterly M&A publication.
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