M&A Roundup: Clover acquisition approved and OutSurance sells New Zealand business

Also: Brait and Omnia making plans to pay off debt, and DNI 4PL to buy Blue Label Mobile.

The Public Investment Corporation (PIC) is set to take a stake in Liquid Telecom if Africa’s biggest fibre company goes ahead with a planned initial public offering. 

PIC agreed to set aside funds to guarantee a $375 million (R5.6 billion) loan to Liquid parent Econet Global from Deutsche Bank. The money manager would then buy stock in Liquid when it lists, at a discount to the offer price, and that money will be used to repay Deutsche. 

Read more: PIC to take stake in Liquid Telecom

The R4.8 billion acquisition of Clover Industries by a consortium called Milco has been approved by the competition authority. 

The tribunal has put a three-year moratorium on retrenching 516 workers, which had been subsequently lowered to 277 planned job losses. 

Read more: South Africa’s Competition Tribunal approves Clover’s R48 billion buyout 

Brait said on Monday that it is in talks with its major shareholder Titan as it plans to materially cut its debt, through raising equity and recapitalisation, among other ways.

Read more: Virgin Active’s owner and Christo Wiese in talks about new plan 

UK-focused real estate investor Stenprop has completed the acquisition of 100 industrial units in five separate transactions for a combined £16.7 million, with the company taking advantage of low asset prices as a result of Brexit uncertainty.

Stenprop is focusing on UK multi-let industrial properties and is listed on the Johannesburg Stock Exchange. The company tends to rent space to entrepreneurial tenants and small manufacturing and services businesses.

Read more: Brexit uncertainty a boon for Stenprop 

OutSurance will sell its New Zealand insurance business, Youi New Zealand, to Tower Insurance, that country's third-largest general insurer.  

Read more: OutSurance sells New Zealand insurance business 

Omnia has announced that it had raised R2 billion via a rights offer, which would be used to repay its debt.

The rights offer was fully underwritten by a number of asset management companies whose clients were shareholders of Omnia including Allan Gray, Coronation, Foord, Kagiso, Old Mutual and Prudential.

Read more: Omnia raises R2 billion through a rights offer 

ArcelorMittal’s South Africa unit may close some operations pending a review as it looks to strengthen its long-term sustainability and battle cheap imports, rising costs and a flagging local economy.

Read more: ArcelorMittal South Africa may close some sites 

Blue Label Telecoms, said on Wednesday that DNI 4PL would be buying its interests in Blue Label Mobile as well as taking over 3G Mobile from its subsidiary The Prepaid Company

The sales are subject to various suspensive conditions and intended to “ensure a more liquid balance sheet”, according to Blue Label.

Read more: Blue Label is in a selling spree