Exchange-Listed Companies
Sirius Real Estate continued its acquisition of spree, this week announcing the addition of a multi-tenanted business park in Mönchengladbach, an area close to economic hubs Duisburg and Cologne in Germany. The €17,21 million acquisition is through a sale and partial leaseback agreement with the current owner, SMS Group which occupies c.26% of the site.
In a move to expand its market share in adultwear through organic and acquisitive growth, Pepkor has entered into an agreement with Retailability to acquire the Legit, Swagga, Style and Boardmans businesses for an approximate R1,9 billion (flagged as less than c.2% of Pepkor’s market capitalisation in the release). These businesses at one time formed part of the Edgars Group which emerged from business rescue in 2020 to form part of the Retailability stable. Pepkor aims to unlock value through its extensive scale in sourcing, supply chain and back-office functions, in addition to leveraging its capabilities in credit and other financial services.
Zaad, which is indirectly controlled by Zeder Investments’ subsidiary Zeder Financial Services, has disposed of its equity interests in businesses Bakker Brothers (including intellectual property rights in the Netherlands) and Pristine Marketing to ETG Inputs. The businesses have operations in Zimbabwe, Mozambique and Zambia. The aggregate disposal consideration of R135 million will be paid to Zaad with R18 million on the deal’s effective date and the balance will be held in escrow for 12 months and paid on close. The deal is a category 2 disposal.
Shaftesbury Capital has entered into a strategic, long-term partnership with Norges Bank Investment Management, the Norwegian sovereign wealth fund, in respect of its Convent Garden estate. Norges has taken a non-controlling 25% stake with Shaftesbury Capital retaining 75% ownership and management control. The transaction values the Covent Garden estate at £2,7 billion and gross proceeds from the transaction are expected to be c.£570 million. The portfolio has a net initial yield of 3.6%, annualised gross income of £104 million and an estimated rental value of £134 million as at end December 2024. The portfolio covers 220 buildings and over 850 units across 1.4 million square feet.
As a result of market speculation, Gold Fields announced it had made a non-binding indicative proposal to acquire Australian miner Gold Road Resources for a cash consideration of A$3.05 per share in a deal valued at A$3,3 billion. The consideration comprised a fixed portion of A$2.27 per shares plus a variable portion equal to the value of each shareholders’ proportion of Gold Road’s shareholding in De Grey Mining. The proposed acquisition would consolidate Gold Fields’ ownership of Gruyere, a low-cost long-life producing old mine in Western Australia in which Gold Road holds a non-operating joint venture interest. The proposal was rejected by the Gold Road Board of Directors which made a counter offered to acquire Gold Fields’ operating interest in the Gruyere mine. This was turned down by Gold Fields.
Unlisted Companies
Jem HR, a specialist human resources firm offering tech platforms for deskless workers has closed its pre-Series A funding round, raising R60 million in a round led by Old Mutual subsidiary NEXT176 which includes a R30 million private debt facility. Jem streamlines HR operations for employers, from leave management and payslip delivery to internal communications and query management, building long-term financial stability through payroll-integrated savings, financial services and financial education.
DealMakers is SA’s quarterly M&A publication.
www.dealmakerssouthafrica.com
