Exchange Listed Companies
In May, a consortium comprising Remgro and MSC Mediterranean Shipping Company proposed to the Board of Mediclinic International a possible cash offer to acquire the Mediclinic shares not already held by Remgro at a price of 463 pence (R88.43) per share. The proposal was rejected on the grounds that the offer significantly undervalued Mediclinic and its prospects. At the time, Remgro which currently holds a 44.6% stake in Mediclinic, said that it would consider its position. This week Mediclinic announced it would progress with talks on the consortium’s fourth proposal which values Mediclinic shares at 504 pence per share – a premium of 23% to the share price of 411 pence on June 7, the day prior to market speculation. In line with regulations, the consortium must make a firm offer by August 4, 2022.
Bidvest has announced the acquisition of B.I.C. Services, a niche integrated facilities management services provider across office, commercial and education sites. The acquisition is for an enterprise value of A$160 million (R1,8 billion). It has been some time since a South African corporate has made an acquisition in Australia, not surprising given the poor track record of those who have gone before.
Huge has acquired Tethys Mobile, currently in Business Rescue, from shareholders and creditors for an undisclosed sum. Once implemented, Huge will change the name to Huge Digital Enablement. Tethys was SA and Africa’s first mobile virtual network operator when it launched to the market in 2006.
Deutsche Konsum REIT-AG (DKR) has acquired a portfolio of six mainly food-anchored local retail properties in Saxony and Saxony-Anhalt. The properties which have a combined rental area of 9,000sqm were acquired for c.€9,2 million.
Both Delta Property Fund and Texton Property Fund have notified shareholders that property transactions announced in 2021 have been terminated due to the inability of the purchasers to fulfil conditions precedent. Properties in question were the sale by Texton to Stonehill Property Group of the Forestrust and Loop Street Properties for an aggregate consideration of R397 million and the disposal by Delta of the Fort Drury and Sediba properties to Central Plaza Investments 199 for R76,5 million.
Unlisted Companies
Lonsa Everite, together with black-owned and managed South African private equity firm Legacy Africa Capital Partners and Swartland management, have acquired 100% of the issued shares in Swartland Investments and Swartland Insulation, as well as the freehold properties. Swartland is a manufacturer and supplier of wooden and aluminum doors and windows, garage doors as well as XPS insulation and cornices. The business operates in Southern Africa, the UK and the US. The transaction value of c.R1,3 billion was funded through a combination of equity, vendor deferred payment agreement and R660 million of debt financing.
In another deal, Legacy Africa Capital Partners has invested an undisclosed sum in power solutions provider Continuous Power Africa (CPA). The investment will accelerate CPA’s expansion into new markets beyond telecommunications and grow its range of products.
Fintech startup Sava Africa, a local spend-management platform, has raised US$2 million in pre-seed funding. The platform combines bank accounts, mobile wallet, payments, accounting integrations and invoice and expense management tools. The round was led by Quona Capital with participation from Breega, CRE Ventures, Ingressive Capital, RaliCap, Unicorn Growth Capital and Sherpa Ventures. Funds will be used to launch its product in South African and Kenya.
Alaris, which delisted from the JSE in February this year, has expanded its footprint in Europe with the acquisition of Kuhne electronic, a German electronics engineering company. Financial details were undisclosed.
DealMakers is SA’s M&A publication
www.dealmakerssouthafrica.com
