Top deals and corporate moves making headlines this week

In focus this week: Capitec, Barloworld, Sibanye-Stillwater and Lonmin, Transaction Capital, Nodus Equity and New Seasons Investment Holdings, and more.

Transaction Capital

Transaction Capital, which funds the purchase of about 650 South African minibus taxis a month, has announced that the South African National Taxi Council (Santaco) has acquired a 25 percent stake in the company’s subsidiary SA Taxi valued at R1.7 billion.

The deal will also connect into Santaco’s network, helping the business sell goods and services such as refurbished vehicles, spare parts and insurance. Of the purchase price, R1.2 billion will be funded jointly by Standard Bank and Futuregrowth Asset Management with remainder facilitated by SA Taxi in the form of a vendor funding.

Sureswipe

Sureswipe, a South African card payment service provider, has acquired a 50.1 percent majority stake in Humble Till. Humble Till is South Africa’s cloud-based Point of Sales system that works on a variety of platforms like Apple’s iOS, Android and the web, which makes it easy and affordable for SMEs.

Sureswipe said the move will enhance its offering to small and medium-sized businesses using card payment solutions in-store by offering them an affordable and integrated solution. The value of the deal was not disclosed by both companies.

Barloworld

Listed distribution group Barloworld has unveiled a Broad-Based Black Economic Empowerment (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. The company will also sell certain immovable properties to Main Street 1646 Limited, a majority black-owned and controlled company, for R2.722 billion.

Read more here.

Capitec

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. Capitec beat Nedbank, and two consortiums — the Public Investment Corporation and microlender and microinsurer Bayport Financial Services, and Grindrod Bank and Arise — in emerging as the winning bidder for Mercantile Bank.

The purchase price of Mercantile Bank will be paid from capital and cash reserves, Capitec said.

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Sibanye-Stillwater and Lonmin

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.

Trade unions have argued against the takeover as they believed that if approved, it would result in wide-scale retrenchments.

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Transnet

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 share of the project. General Electric has handed over the leadership role in the project, which will see two railway lines connect the north of Nigeria to the south, to Transnet.

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Nodus Equity and New Seasons Investment Holdings

The two private equity players have merged to form a new 51 percent black owned investment fund - New Seasons Investment Fund.

The new private equity fund will focus on empowering medium-sized enterprises across various sectors in South Africa and will manage private equity investments in excess of R1 billion.The new private equity fund’s focus will also include the social upliftment of historically disadvantaged South Africans.

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Corporate moves

Steinhoff

Steinhoff has appointed its commercial director Louis du Preez as CEO to replace Danie van der Merwe, the company announced on Monday.Steinhoff said that Danie will be stepping down at the end of December. Danie was promoted from COO to acting CEO on December 19, two weeks after the announcement of accounting irregularities and the resignation of CEO Markus Jooste. 

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PSG Group

PSG founder Jannie Mouton has stepped down as non-executive chair and director of the investment holding company after 23 years at the helm. He also steps down from the company’s subsidiaries PSG Financial Services and Zeder. Mouton announced in a note to shareholders in May 2018 that he had been diagnosed with an early form of dementia.

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Public Investment Corporation

Dr Dan Matjila, the CEO of the Public Investment Corporation (PIC), has offered to resign, but effective at the end of April 2019, according to a report by amaBhungane Centre for Investigative Journalism. According to the amaBhungane report, Matjila has not actually submitted his resignation, but proposed that he will do so at the end of January.  He will remain in charge of the PIC until April 30, 2019 and be actively engaged in handing over to a successor.

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