Exchange-Listed Companies
Neo Energy Metals Plc (NURSA), the low-cost uranium developer with a secondary listing on A2X, has entered into an agreement with Eagle Uranium SA to acquire a 100% interest in the Henkries South Uranium Project. The project comprises one granted Prospecting Licence that extends over c. 1,050km² and adjoins the company’s exiting Henkries Uranium Project in the Northern Cape province. NURSA will issue 25 million shares in the company and repay R600,000 of inter-company debt. On receipt of regulatory approvals, a further 175 million shares will be issued and R1,7 million debt repaid. Further deferred equity payments of a 250 million shares (max) based on JORC Compliant Resources of uranium, will be issued. The company’s share price is currently 32c per share having listed in February a 15c per share.
Subject to the approval of shareholders, Coronation Fund Managers will issue 37,57 million shares equivalent to 9.70% of the company with a market value of R1,46 billion to two B-BBEE trusts at a nominal subscription. Coronation currently is 31% black owned. The trusts – Imbewu Trust which is for the benefit of permanent employees will hold a 7.84% stake and the Ho Jala Trust, a trust whose principal objective is to conduct benefit activities for the benefit of black people will hold 1.86%. The shares will be subject to a notional funding arrangement for the duration of 10 years and beneficiaries of the trusts will receive a trickle dividend allowance – 10% of the cash distributions with the remaining 90% being used to reduce the notional funding balance. Coronation shareholders holding 26.95% of the issued share capital have indicated their support to vote in favour of the transaction.
In a small related party transaction, Tsogo Sun will, via its wholly owned subsidiary Tsogo Sun Casinos, acquire a 25.355% share in commercial office park development, Monte Circle from HCI Monte Precinct (Hosken Consolidated Investments). Tsogo Sun will pay R167 million in cash.
Unlisted Companies
Johannesburg-headquartered Grid Africa, a solar solutions provider, has secured a R50 million equity investment from local Rifuwo Energy Partners. The funding will be used in advancing renewable energy projects across South Africa.
Endeavor SA, a venture capital firm, has raised R190 million for its Harvest III fund earmarked for investment in local technology businesses. The capital raise exceeded its initial target of R150 million. Investors in this first round included Standard Bank, Allan Gray and the SA SME Fund. Overall, Endeavor is looking to raise R500 million for the fund.
SA and Africa’s largest mezzanine fund manager, Vantage Capital, has closed a €66 million mezzanine investment in telecommunications player Camusat Holding S.A.S. The proceeds of will be used to refinance debt and fund the capital expenditure required for expansion of the group’s AktivCo division. Vantage Capital’s investment is part of a global financing package of €81 million provided in a consortium with Eurazero, a European asset manager.
Syntax Systems, a global technology solutions and services provider for cloud application implementation and management, has acquired Cape Town headquartered Argon Supply Chain Solutions. Argon which has a presence in the UK and South Africa, specialises in warehouse management and supply chain optimisation solutions, serving a growing range of multi-national customers.
DealMakers is SA’s M&A publication.
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