Who's doing what this week in the South African M&A space?

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Who's doing what this week in the South African M&A space?
Credit: © Reuters.

Exchange Listed Companies

    • EOH (JO: EOHJ ) is to sell its Network Solutions business conducted by subsidiary EOH Mthombo and its entire stake in Hymax (SA), both operating in the iOCO division, to Seacom South Africa in a deal worth c. R144,9 million. The transaction comprises two inter-conditional agreements - the sale of the EOH-NS business as a going concern to Hymax and the subsequent sale of Hymax to Seacom. The proceeds will be applied to further reduce EOH debt.
    • Caxton and CTP Publishers and Printers (JO: CATJ ) has acquired the assets of Amcor Flexibles South Africa. The Bag-in-Box and Pouching operations in Cape Town and the Flexible operations in Gqeberha from NYSE-listed Amcor group, represents an expansion of the company's existing packaging operations. The R90 million deal falls below the threshold for categorisation of transactions in terms of the JSE Listings Requirements and therefore does not require shareholder approval.
    • Accelerate Property Fund (JO: APFJ ) is to dispose of the Leaping Frog shopping centre located in Fourways to Dorpstraat Capital Growth Fund. The property has been disposed of for a cash consideration of R130 million, a 7.1% discount to current book value. Dorpstraat plans to undertake a significant redevelopment of the centre and Accelerate has the option to repurchase 50% of the property post redevelopment.
    • Afristrat Investment (JO: ATIJ ) has, via its subsidiary ECS Private Equity, entered into a binding agreement with SATF to acquire Crosscorn, a Botswanan producer and supplier of maize, sorghum, cowpea seeds and animal fodder seeds, together with a distressed loan asset pool. The US$5 million transaction value will be settled by a combination of debt ($3,5 million) and equity ($1,5 million).
    • Deneb Investments (JO: DNBJ ) has, through its wholly-owned subsidiary Sargas, entered into an agreement with GS Prospects to dispose of a property in Worcester, Breede Valley, Western Cape for R43,5 million in cash.
    • Balwin Properties (JO: BWNJ ) has concluded a deal with The Corlett Drive Trust to acquire a new head office building in Melrose Arch for a purchase consideration of R125,8 million. The full purchase price will be funded by a loan.

Unlisted Companies

    • SmartWage, an HR and communications technology startup, has raised US$2 million in an oversubscribed seed round. Initially an app providing a means by which a company could provide employees with instant access to a percentage of their wages for work already completed, SmartWage has since expanded by digitising HR processes and providing a broader communications tool.
    • Lockstat, an advanced analytics startup based in Cape Town, has secured an undisclosed funding round from Grindstone Ventures to scale its growth. Locstat's technology combines data from multiple sources into a single environment providing organisations with real-time insights into their businesses.
    • PepsiCo (NASDAQ: PEP ), as per the terms of its acquisition of Pioneer Foods in 2019, has launched The Baumi Trust which owns R1,66 billion Nasdaq-listed PepsiCo shares. Eligible participants who are employees, 93% of whom are black, have been allocated units in the trust and will receive proceeds from the shares in the form of annual dividends and milestone distributions.
    • RCS, the consumer finance arm of BNP Paribas (PA: BNPP ), has announced the acquisition of Mobicred, a local online credit provider. The deal will enable RCS to accelerate its growth into the e-commerce ecosystem by adding new brands to its network. Financial details were undisclosed.
    • Dan-Bunkering, a supplier of bunker fuels, lubricants and related products and services to vessels worldwide, headquartered in Denmark, has acquired Cape-based South African Bunkering and Trading (SABT) for an undisclosed sum.
    • ADP (NASDAQ: ADP ), an American provider of human resources management software and services, has acquired Sage's local payroll outsourcing business, marking the strong partnership between the two businesses in South Africa over the past 12 years.

DealMakers is SA's M&A publication.www.dealmakerssouthafrica.com

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