Exchange-Listed Companies
Kibo Energy subsidiary, Mast Energy Developments (MED), has concluded a Heads of Terms agreement with regards to a joint venture with a new institutional investor-led consortium. Under the agreement, the institutional investor will inject all the required investment capital into the JV with an expected total of £33,6 million with no funding contribution required from MED which will provide the required projects into the JV. The projects, a portfolio of gas peaker plants with a combined generation output of c. 50 MW to be developed and/or acquired, are expected to be income generating within the next 12 months.
Dis-Chem Pharmacies is to acquire a 63,000m³ distribution centre in Gauteng for a purchase consideration of R502 million. The acquisition will increase its warehouse space by 75%.
Bayobab (MTN) and Africa50, an infrastructure investment platform headquartered in Morocco, have signed a partnership agreement to develop Project East2West, a terrestrial fibre optic cable network connecting the eastern shores of Africa to those on the continent’s west. The partnership will invest up to US$320 million connecting ten African countries over the next three years. The project will offer substantial improvements in data traffic for internet services providers, mobile network operators and hyperscalers operating in the affected countries. It is expected to cut latency by up to 65% on the east-to-west route.
In November 2021 Vodacom and Community Investment Ventures (57%-held by Remgro) announced a deal in terms of which Vodacom disposed of its FTTH and FTTB assets plus transmission assets into a new vehicle InfraCo holding CIVH assets including Vumatel and Dark Fibre Africa. Vodacom has a 30% stake in InfraCo which has since been renamed Maziv. The transaction’s longstop date has been extended to 30 November 2023. The deal remains subject to the approval of the SA competition authorities. The 180-day period within which Vodacom is entitled to exercise the VC Call option to increase its stake by a further 10% will expire on 30 September 2023.
Unlisted Companies
Draslovak a.s., a global leader in cyanide-based chemical specialities and agricultural chemicals, has acquired South African-based Blue Cube Systems for an undisclosed amount. Blue Cube develops, builds and sells real-time mineral analysers for application in mineral beneficiation processes.
Digital technology specialist e4 has been acquired by a consortium of private equity investors led by private equity fund manager Infinite Partners and including diversified financial services group, 27four. Financial details were undisclosed.
Port443, a South African cybersecurity startup, has secured undisclosed funding from investment firm Iziko2.0 with supporting funding from RMB Ventures. The investment will be used to expand Port433’s footprint into the Middle East and Africa region.
DealMakers is SA’s M&A publication.
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