Exchange Listed Companies
Sanlam has made an offer to take control of black-owned JSE-listed investment holding company AfroCentric Investment (ACT). The offer is conditional on Sanlam acquiring a minimum of 36.6% and a maximum of 43.9% shareholding in ACT from minorities at an offer price of R6.00 per share – a premium of 49.01% to the 30-day VWAP. Currently Sanlam, through its subsidiary Sanlam Life, holds a 28.7% stake in ACT Healthcare Assets (AHA) which it acquired in 2014 giving it an effective 27% stake in Medscheme. As part of the transaction, Sanlam will transfer its shareholding in AHA to AfroCentric in exchange for a 28.7% stake in AfroCentric. The deal will see Sanlam expand its client proposition to provide a more holistic product offering.
Grindrod Shipping has made a further announcement regarding the potential agreement with Taylor Maritime Investments (TMI). Grindrod Investments which holds c.10.12% stake in Grindrod Shipping will tender its shares to TMI in line with the voluntary cash offer to shareholders of US$26 (this includes a US$5 dividend distribution) per Grindrod Shipping share. The voluntary offer however is conditional on TMI receiving more than 50% of the voting rights from existing shareholders by the expiration time of the offer. Should this minimum stake not be achieved, the deal will not take place.
Ascendis Healthcare shareholders have approved the Ascendis Pharma disposal to Austell Pharmaceuticals in a R432 million deal. The deal was conditional on shareholders not approving the sale of Pharma to Pharma-Q and Imperial Logistics, a R375 million deal first announced in February 2022. In a statement the company said it expected the Austell deal to close by end-October.
RCL Foods is to unwind its BEE transaction announced in 2013 by way of a repurchase of shares. Subsequent to its implementation the company’s share price has significantly declined in value, resulting in the existing BEE transaction being materially underwater at the end of its term in May 2022. The aggregate repurchase consideration is R229,63 million which will be funded from the company’s cash resources. Since the shares to be repurchased amount to over 5% of the company’s issued share capital, the repurchase is treated as an affected transaction requiring the appointment of an independent expert.
Spear REIT is to acquire the industrial property known as The Island in Milnerton for R185 million from Inospace 2. The deal is in line with the company’s strategy to increase exposure in the logistics, urban logistics and bulk warehousing in the Cape Town Metropol.
Heriot has released its offer circular to Safari Investments RSA shareholders detailing its firm intention to make a general offer of R5.60 per Safari share. The offer will remain open until 25th of November. An independent expert will now be appointed by the Safari board to opine on whether the offer is fair and reasonable.
In a small related party deal, Famous Brands has acquired the properties 478 James Crescent and 37 Richards Drive, both in Midrand.
Unlisted Companies
Cape Town-based EXEO Capital, an alternative investment partner in sub-Saharan Africa, has acquired The Vital Health Food Group through Nurture Brands, the convenience foods platform in EXEO Capital’s Agri-Vie Fund II. Vital is a local manufacturer and distributor of vitamins, minerals and supplements. Financial details were undisclosed.
Sakhumnotho Group, a local equity investor, has acquired a 25% stake in the Boschkrans Boerdery Business, a producer and exporter of citrus and tables grapes. The investment will further Boschkrans strategic vision to be a global role player in the production and marketing of fresh produce.
Mineworkers Investment Company (MIC) has added to its impact investing portfolio in a deal which will see it take a 24.85% stake in TooMuchWifi for an undisclosed sum. Funds will be used to grow the business and so expand access to affordable data by customers and their communities.
DealMakers is SA’s M&A publication
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