Exchange-Listed Companies
Having failed to persuade Teck Resources’ minority shareholders earlier this year, to merge the Teck operations with that of Glencore’s, Glencore has reached an agreement with Teck to acquire a 77% stake in its steelmaking coal business Elk Valley Resources (EVR) for US$5,93 billion in cash, on a cash free debt free basis. Nippon Steel Corporation will hold a 20% stake in EVR and POSCO the remaining 3% – both of whom have existing relationships with Glencore. The company remains committed to the demerge of the combined businesses, believing that a standalone company containing its combined coal and carbon steel materials business, including its stake in EVR, would attract strong investor demand given its yield potential.
Absa’s Mauritius subsidiary has reached an agreement to acquire the domestic Wealth and Personal and Business Banking business of The Hongkong and Shanghai Banking Corporation (HSBC) in Mauritius. Financial details were undisclosed.
Deneb Investments is to dispose of the property situated at 34 Kinghall Avenue, Epping in Cape Town to Gerber Advisory Specialists for R64,35 million. The property is not considered core to Deneb’s strategy.
Unlisted Companies
Pineapple, the local digital insurance provider, has announced the conclusion of a R400 million funding round. The round was led by new investors, Futuregrowth, Talent10 and Mineworkers Investment Company while the business received additional investment support from existing investors including Old Mutal ESD, Lireas Holdings, ASISA ESD Fund and E4E Africa. Pineapple’s technology allows it to service customers at 20% of the cost of traditional insurance providers.
Local proptech startup Neighbourgood has acquired Cape-based traveltech startup Local Knowledge in a move expected to transform the travel and hospitality experience. The deal will combine Neighbourgood’s 1000-plus living and working spaces with the Local Knowledge’s ability to provide the next-gen with unforgettable travel experiences via its technology.
Convergence Partners has increased its stake in African broadband infrastructure company CSquared through the acquisition of the stake held by Google. In addition, the pan-African impact investment management firm took part in CSquared’s US$25 million equity capital raise.
ASX-listed Vanadium Resources (VR8) has increased its interest in Steelpoortdrift by 4.59% to 86.49% through the completion of a transaction with Math-Pin, its BEE party. The acquisition is payable via a combination of R2,930 in cash and 8,092,810 share options to acquire VR8 shares, which will on exercise, represent 1.48% of the issued share capital of VR8.
Private Equity fund managers 1K Africa and Ascension Capital, have announced an investment in South Africa’s payment profile hosting credit bureau, Consumer Profile Bureau (CPB). The undisclosed investment will be used to help CPB scale its market position and services including its unique technology for tracing, credit verification and debtor profiling.
UK global sports media business LiveScore Group has increased its stake in Wonderlabz, a Cape-based software development and talent hub, from 25% to 100%.
UK headquartered online trading services provider ATFX, has acquired Khwezi Financial Services, a South Africa over-the-counter derivative provider. Financial details were undisclosed.
Liquid Intelligent Technology has received R900 million in funding from the IFC and Rand Merchant Bank to be used to scale affordable broadband access in the Eastern Cape Fibre Project.
DealMakers is SA’s M&A publication.
www.dealmakerssouthafrica.com
