Top deals and corporate moves making headlines this week

In focus this week: Group Five, Experian, Anglo American Platinum, Liquid Telecom and more.

G4S

Security company G4S is considering an exit from its $1.5 billion (R21 billion) cash-in-transit business, which has been hit by widespread attacks on its armoured trucks in South Africa, according to a report by Bloomberg.

A review of the security division is expected to be completed next year, with the most likely options being an initial public offering (IPO) or spin-off, CEO Ashley Almanza told Bloomberg. A successful IPO could value the division at about at about £1.57 billion (R28.2 billion), according to RBC Capital’s estimates.

The Bloomberg report said the move comes after a re-organisation of G4S at the start of this year, which divided the group into two divisions focused on private security services and cash handling.

Group Five

A number of parties have expressed interest in buying parts of Group Five, the struggling construction company announced on Thursday.

Group Five, one of South Africa’s remaining and largest construction companies, said it has received expressions of interest from a number of parties for various parts of its business. Its board, with the help of appointed corporate advisors, is currently considering buyout offers. Group Five didn’t disclose the parties that have made the buyout offers or its appointed corporate advisors.

Read more here

Experian 

UK-listed information services company Experian has agreed to acquire South African credit bureau, Compuscan, for a cash consideration of R3.7 billion ($263 million).

The transaction, which is expected to be completed during the first quarter of financial year ending March 2020, will be funded from Experian’s existing cash resources. The transaction is subject to approval by the Competition Commission in South Africa.

Read more here.

Anglo American Platinum

Anglo American Platinum (Amplats), through its subsidiary Rustenburg Platinum Mine (RPM), is continuing its sale of noncore assets as it has finalised the sale of its 33 percent stake in the Bafokeng Rasimone Platinum Mine (BRPM) joint venture for nearly R2.2 billion to Royal Bafokeng Resources Proprietary (RBPlat).

Amplats said on Wednesday that RBPlat has taken over full ownership of the operation with effect from December 11, 2018

The completion of the sale of RPM’s 33 percent interest in the BRPM joint venture allows Anglo American Platinum to further simplify its portfolio and focus its capital allocation into own-managed mines and projects.

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Deutsche Bank 

The German government would be open to a merger between Deutsche Bank and Commerzbank, the two largest banks in the country.

Different scenarios were discussed at the Ministry of Finance. For example, the government can become the largest shareholder of Deutsche Bank for five years, after which a merger with Commerzbank takes place. Another option is the establishment of a holding company with interests in both banks, according to Focus.

Read more here.

Liquid Telecom

Liquid Telecom, Africa’s largest fibre-network operator, has reached an agreement with the CDC Group, the UK’s development finance institution, to invest $180 million (R2.5 billion) with the company.

Liquid Telecom said the investment will enable it to expand its high-speed broadband connectivity to some of the most underserved communities across the African continent.

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Jubilee Metals

Jubilee Metals has acquired a chrome operation, which currently processes 75 000 tonnes per month, for a consideration of £8.6 million (R154 million), giving the diversified metals recovery company a strategic position within South Africa’s platinum group metals (PGM) market.

Jubilee, which is listed on the JSE’s AltX and London’s AIM bourses, has entered into an agreement with PlatCro Minerals to purchase the chrome operation that will be funded via project funding, cash and the issuing of shares.

Financing the deal will include secured project financing to the value of $6 million (R85.2 million), a cash payment of $2.83 million (R40.2 million), the issue of 52.4 million new Jubilee shares at a price of 2.5 pence per share.

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Kibo Energy

Kibo Energy has announced that its 60 percent owned UK subsidiary, MAST Energy Developments, has secured an exclusive option, to undertake due diligence and negotiate the potential acquisition of three peaking power sites totalling 31.3 MW.

Under the agreement, MAST Energy Developments (MED) has secured the exclusive right to acquire three peaking power sites totalling 31.3 MW from a prospective developer, subject to completion of due diligence to MED/Kibo’s satisfaction and subsequent agreement of detailed commercial terms and conditions, including the acquisition price and transaction structure.

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Group Five

Construction company Group Five has appointed Anthony Clacher as the new CFO to replace Cristina Freitas Teixeira, who will be leaving the company at the end of December 2018.

Cristina announced her departure on October 2, 2018. Anthony’s appointment comes at a time when the construction company is in a difficult position and continues to incur losses given South Africa’s slow economy and declining infrastructure spend by the government.

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Private Property

Private Property, a South African online real estate portal that enables property buyers to search and find property listings, has appointed Amasi Mwela as the company’s new chief executive officer, effective January 2, 2019. 

The appointment comes at a time when the property company seeks to boost its own growth since changing ownership in February 2018. Amasi’s appointment follows the purchase of Private Property by Cognition Holdings, a niche technology player for R127 million in October 2018.

Mwela joins Private Property after heading Fundi, where he led the company’s rebranding and introduced comprehensive solutions for the education sector, which included funding, fund administration, support and related products. 

Mwela previously worked for Old Mutal iWYZE, American Express Corporate Travel, First National Bank and Standard Bank.  He holds a Bachelor of Commerce (Bond University) and has an MBA (Milpark Business School).