Exchange-Listed Companies
Following the April announcement by the Takeover Regulation Panel on its findings into the investigation into companies including African Phoenix Investments and the settlement reached, African Phoenix Investments has made a mandatory offer to all shareholders of R6.41 per share for the remaining 51.2% stake (excludes concert parties) in enX. Shareholders holding 19.6% of the total shares in issue (again excluding concert parties) have provided irrevocable undertakings not to accept the offer. The offer price reflects a discount of R0.06 (0.877%) to the 30-day volume weighted average price of the enX share prior to the announcement.
Absa has acquired a minority stake in Khula! a local agri-tech startup founded in 2016. The app’s platform connects farmers to the retail, wholesale and export markets creating an ecosystem to address challenges across the agricultural value chain.
Through its subsidiary Alexander Forbes Financial Services, Alexander Forbes has concluded a binding agreement with TSA Administration to acquire a 60% stake in the risk insurance administrator for an undisclosed sum. TSA will operate as an independently managed unit within the group and Alexander Forbes has the option to acquire the remaining 40% of TSA over a period of five years. The purchase consideration will be settled in cash.
Steinhoff International is to dispose of its 50.1% stake (an economic interest of 45% on a fully-diluted basis) in the Mattress Firm to Tempur Sealy International. Under the terms of the agreement, Tempur Sealy will acquire 100% of the equity in the Mattress Firm for an enterprise value of c. $4 billion. The consideration will consist of c.$2,7 billion in cash and 34,2 million shares in Tempur Sealy. Following the transaction, which is expected to close in the second half of 2024, Steinhoff will indirectly own c.7.5% of the combined company. The share consideration received will be subject to a three month lock up. Proceeds from the sale will be used to repay financial indebtedness.
The Futuregrowth Community Property Fund (Old Mutual) has acquired Sam Ntuli Mall for an undisclosed sum. The acquisition of the property brings the Comprop portfolio to 24 shopping centres valued in excess of R7,3 billion.
The deal announced in July 2022 between Vukile Property Fund and the City of Johannesburg (COJ) for the acquisition by Vukile of the Pan Africa Shopping Centre has been terminated. Shareholders were advised that the COJ ‘failed to review and grant the amendment to the notarial head lease and to consent to the cession and assignment of the lease to Vukile”.
Unlisted Companies
Oakantswe Construction and Projects, a Pretoria-based, black women owned and managed electrical contracting firm, has received funding from the Abadali Equity Equivalent Investment Programme (EEIP) administered by Edge Growth. The funding will be used to enhance service delivery by reducing equipment hire costs and improving turnaround times and to establish an inhouse qualified team.
Mineworkers Investment Company through its venture capital initiative Khulisani Ventures, has announced a R25 million investment in healthcare technology company Quro Medical. The startup provides premium healthcare solutions at affordable rates such as the Hospital at Home Program, the first of its kind in Africa.
Black-owned and managed investment holding company Sithega has acquired a 62% stake in Legal Expenses Group Africa for an undisclosed sum. The remaining stake is held by Hollard. This is not the first time that Hollard and Sithega have stitched a deal together – in April 2019 Sithega acquired a controlling stake in Prescient from Hollard and anchor investors.
Afrihost, a South African Internet Service Provider, has acquire a majority stake in Home-Connect from CipherWave as consolidation of the local fibre market continues. Financial details were undisclosed.
DealMakers is SA’s M&A publication.
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