M&A Roundup: African Rainbow Capital and Aveng make headlines

Also: Delta Property Fund and Rebosis in talks of a merger, and Quilter sells life and pensions business.

Delta Property Fund and Rebosis Property Fund have agreed to enter into merger talks, which could help both companies create an enlarged entity that can ride out tough economic conditions. 

If successful, the potential merger will create an entity with a market value of about R2 billion and that operates a more than R20 billion portfolio of shopping centres and offices occupied by government departments. 

Read more: Rebosis-Delta mull a merger 

African Rainbow Capital (ARC) has acquired a 25 percent shareholding in Capital Legacy. The acquisition means that ARC will complete its participation in the entire financial services value chain.

Read more: African Rainbow Capital invests in Capital legacy 

In another indication that construction firm Aveng is offloading more noncore assets, it plans to sell its loss-making Duraset Alrode business for about R50 million to Videx Wire Products.

Aveng has been offloading assets in a bid to cut more debt as South Africa’s construction industry faces a dearth of major infrastructure projects and slowing economy.

Read more: Aveng sells more assets

Brait has hired Morgan Stanley, the investment bank, to seek a buyer for a minority shareholding in Virgin Active.

Read more: Brait wants to cut virgin active stake sky news report

On Monday, Hyprop Investments and AttAfrica concluded an agreement to dispose of their interests in the Manda Hill shopping centre, in Zambia, to Growthpoint Investec African Properties. The shopping centre was owned by Hyprop Investment’s 37.5 percent-held Mauritius subsidiary. Hyprop’s share of the disposal proceeds will be used to settle a portion of its dollar denominated debt. 

Read more: Hyprop sells shareholding in Zambian mall 

London-based Quilter, Old Mutual’s former wealth management business, has sold its heritage life and pensions business, Old Mutual Wealth Life Assurance, to ReAssure for £425 million.

Read more: Quilter sells life and pensions business to reassure for £425 million