Exchange-Listed Companies
Along with the release of its interim results, MTN announced it had signed a memorandum of understanding with Mastercard. Following a bespoke process to identify and potentially introduce strategic minority investors into the US$5,2 billion (enterprise value) MTN Group Fintech business, the company will, following the completion of the due diligence exercise, close a deal with Mastercard.
RMB Corvest (FirstRand) in partnership with Umoya Capital Partners, has acquired a significant minority stake in SANTS Private Higher Education Institution. Programmes offered by SANTS focus on quality at an appropriate cost, with an emphasis on ease of access and customer service for potential educators. Since its establishment in 1997, SANTS has presented various programmes and qualifications to more than 40,000 educators in South Africa.
The R8 billion BEE deal announced by Sanlam in October 2018 with SU BEE Investment SPV for a 5% stake (111,349,000 new shares) in the company is being unwound. The shares were issued at the time at R70 per share representing a 9.88% discount – the share has traded for the most part below this level thanks to the pandemic and economic fragility of the country. The deal funded via a combination of preference shares and external funding is unlikely to provide the beneficiaries with any benefit and as such Sanlam has taken the decision to unwind the deal. The company will acquire the preference shares held by Standard Bank (the external funder) and secured by 85 million Sanlam shares for R2,4 billion, funded from existing cash resources.
Unlisted Companies
Sylvania Platinum, a low-cost PGMs producer listed on the London Stock Exchange’s Alternative Investment Market, has announced a joint venture (JV) in SA between its local unit and Limberg Mining, a subsidiary of ChromTech Mining. The JV will process PGM and chrome ores from historical tailings dumps and current arisings from the Limberg Chrome mine in the Western Limb of the Bushveld Complex. The JV will trade and operate under the name Thaba Joint Venture. Sylvania will initially fund the R600 million start-up costs and will provide c.US$5 million in the form of a loan for working capital.
Vitruvian Medical Diagnostics, a medical technology startup developing low-cost diagnostic assistance tools for medical laboratories, has raised US$1,25 million in a recent Seed Extension II funding round. The round was led by 27four Investment Managers’ social impact fund, the Nebula Fund. The investment will be used to scale growth by increasing the team and driving growth in new technologies.
Air Products South Africa, via its subsidiary Weldamax, has added to its gas and welding portfolio with the acquisition of a controlling interest in EWN&S. The acquisition will add a further four sales outlets to the existing 13 countrywide outlets. Financial details were undisclosed.
DealMakers is SA’s M&A publication.
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