Top deals and corporate moves making headlines this week

In focus this week: MTN, Edcon, Glencore, Seacom, Bidvest and more.

MTN

Telecommunications company MTN plans to sell its 53 percent shareholding in Botswana’s Mascom Wireless to Econet Wireless, the company confirmed. MTN said it identified Mascom as non-core to its operations after the company embarked on a review of its investment portfolio.  MTN’s shareholding didn’t giving it control of Mascom and the power to execute strategy, paving the way for the company to sell its shareholding. 

Econet Wireless will purchase MTN’s shareholding in Mascom for $300 million representing an EBITDA multiple of approximately 6.1 times. Read more here.

Edcon 

South African department store chain Edcon said on Friday it has secured R2.7 billion in new cash and rent deductions from its secured lenders, government pension fund and landlords as part of a recapitalisation programme.

Edcon, which owns clothing retailers Edgars and Jet, stationery retailer CNA, has struggled to survive South Africa’s retail market, which has seen intensified competition from international retailers Zara and H&M and consumer spending that is in the doldrums.

Since December 2018, Edcon has been in talks with its funders and landlords to give it breathing room and fight off the worst-case scenario of liquidation. Read more here

Glencore

South Africa’s Competition Commission has recommended that the Competition Tribunal conditionally approve Glencore’s proposed acquisition of the Chevron South Africa assets, according to a report by Business Day.

Chevron South Africa operates the country’s second-largest filling station network under the Caltex brand. The commission said the proposed transaction raised public-interest concerns and although it had recommended it be approved, the deal should be subject to a number of conditions, the newspaper reported. Read more here

Seacom

Seacom, a telecommunications services and infrastructure provider, has completed its 100 percent acquisition of fibre provider FibreCo after it was approved by the South African Competition Commission.

The deal, which was announced in November 2018 without its value being disclosed, is set to expand Seacom’s African footprint. FibreCo owns and operates a national open access dark fibre network, providing infrastructure, connectivity and services across South Africa. Read more here.

Royal Bafokeng Platinum

Royal Bafokeng Platinum (RBPlat) has announced plans to conduct a R1 billion rights issue in order to finance the upgrade of the Maseve concentrator plant bought last year from Platinum Group Metals for $58 million.

The proceeds of the rights issue will also go towards lifting metal-bearing ore production to 230,000 tons a month from 150,000 tons at its Styldrift project In terms of the offer, which is nearly 75 percent supported by shareholders, RBPlat will issue about 46.8 million shares at a subscription price of R22 per RBPlat share. Read more here.

Stor-Age

Stor-Age, which is the only listed self-storage provider on the JSE, has acquired a 100 percent stake in Viking Self Storage Bedford, a self-storage facility in England, for £12.0 million (R224.3 million).

The acquisition has been concluded through Stor-Age’s subsidiary, Betterstore Properties UK. Stor-Age is one of only nine publicly traded self-storage real estate investment trusts in the world. Five of these are in the US, two in the UK and one in Australia.

The company said the acquisition is part of the investment strategy of its Storage King business, which includes pursuing value-added acquisitions in the UK self-storage market. Stor-Age’s UK portfolio of self-storage properties is made up of the Storage King business.

Read more here.

Clover

Johann Vorster, CEO of South African dairy producer Clover Industries, said a consortium that has proposed a R4.8 billion buyout offer of the company is excited and has already identified big plans for increased capital expenditure.

JSE- listed investment firm Brimstone said in February that it is reviewing its participation in a consortium that is seeking to acquire dairy producer Clover after protests over the participation on an Israeli company in the deal.

“We are excited [about the transaction]. They [the consortium] have identified huge plans for increased capital and want everything to be reinvested in the business. This is a type of Foreign Direct Investment we need,” Vorster said in an interview with South Africa’s Business Day TV.

Read more here.

Séché Environnement

French environmental specialist, Séché Environnement Group, has acquired 100 percent of all issued shares of Interwaste Holdings, which has been delisted from the Johannesburg Stock Exchange (JSE).

Séché Environnement first announced its plan to acquire Interwaste on November 2, 2018. After Interwaste shareholders gave their approval on January 9, 2019, the South African competition authorities approved the deal, which was finalized on March 4, 2019 with the transfer of 100 percent of the shares to Séché Environnement, and Interwaste’s delisting from the JSE. Read more here

Corporate moves

Bidvest

Bidvest, a JSE-listed industrials group, said on Monday that its executive director Mpumi Madisa will succeed current Group CEO Lindsay Ralphs in 2021.

The company said Lindsay will continue as Group CEO until the 2021 financial year, and Mpumi will work closely with Lindsay to ensure a smooth transition. Lindsay was appointed in 2016 after the retirement of Brian Joffe as CEO. Brian continued to serve on Bidvest board as a non-executive director. Read more here.