M&A Roundup - Barloworld's B-BBEE deal, Capitec buys Mercantile and more
Also: new majority-black-controlled private equity fund, and Sibanye-Stillwater takes over Lonmin.
Listed distribution group Barloworld has unveiled a B-BBEE deal that will include the sale of its shares and local property portfolio to a foundation and majority black-owned company.
The first part of the deal will involve Barloworld issuing 6,578,121 of its ordinary shares – constituting three percent of its entire issued share capital – at R0.05 each to the newly formed Barloworld Empowerment Foundation.
Read more: Barloworld unveils new B-BBEE deal
South Africa’s private equity industry, which has more than R160 billion in assets under management, will see yet another addition of a new and black-owned firm.
A new majority-black-controlled private equity fund New Seasons Investment Fund has been launched after the merger of two private equity fund companies, New Seasons Investment Holdings and Nodus Equity.
South Africa’s Competition Tribunal has approved Sibanye-Stillwater’s takeover of platinum producer Lonmin but imposed a six-month hold on job cuts, it announced on Wednesday.
Sibanye has proposed to buy Lonmin for about R5.73 billion to create the world’s number-two platinum producer at a time when prices for the metal are depressed.
General Electric, the US-based conglomerate, has announced that South Africa’s Transnet will now be leading a $2 billion (R27.8 billion) Nigerian narrow-gauge railway concession project.
This means that Transnet, which is a state-owned rail operator, will have a lion’s share of the project.
Capitec Bank said its offer to buy Mercantile Bank for R3.2 billion has been approved, which will see the microlender enter the small- to medium-sized enterprise financing industry.