Top deals making headlines this week

In focus this week: Mr Price, King Price Insurance, Sibanye-Stillwater, RDI and more.

Mr Price

South African retailer Mr Price has become the latest company to agree for its shares to be traded on the platform of A2X.

The company announced on Tuesday said it will embark on a secondary listing on newcomer A2X’s platform. A2X is a new entrant in the securities trading market, which was previously monopolised by the JSE. Its shares will start trading on the platform from 2 May 2019.

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RDI Reit

Australia-based Cromwell Property Group confirmed on Tuesday that it does not intend to make an offer to acquire JSE-listed RDI Reit.

Cromwell Property Group was seeking to acquire the entire share capital of RDI Reit, which has a primary listing in London, and a secondary listing on the JSE. Cromwell reportedly tabled a £1.85 cash and scrip offer for RDI, valuing the takeover bid at £703.2 million (R13 billion). RDI’s board took the unanimous decision not to support the offer and subsequently a potential merger.

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Roxgold 

Canadian gold miner Roxgold has completed its previously announced acquisition of 11 exploration permits in Côte d’Ivoire from Newcrest West Africa Holdings.

The acquisition, which includes the Séguéla gold project in in Côte d'Ivoir, is valued at $20 million (R288 million). Roxgold will pay an additional $10 million (R144 million) in cash following gold production from any area within the acquired tenements. With the acquisition now complete, Roxgold is set to begin exploration works at Séguéla. The company will undertake 4,000m of reverse circulation (RC) and diamond core drilling at Antenna, which was discovered in 2016.

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King Price

South Africa’s insurer King Price has announced a bid, reportedly worth R2 billion, for Alexander Forbes’ short-term insurance business.

Alexander Forbes is South Africa’s largest pension fund administrator. If successful, the bid would double King Price’s existing business, said chief executive Gideon Galloway. King Price, which was founded seven years ago, sells about 12 000 policies a month and, as at the end of its 2019 financial year in June, will see annual premium of R1.8 billion.

Gideon said the fact that King Price played only in the short-term insurance market made it “the perfect fit” for the Alexander Forbes short-term assets, as the insurer would not compete with Alexander Forbes in any other market segment.

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Sibanye-Stillwater

Diversified miner Sibanye-Stillwater has increased the recommended all-share offer for Lonmin in acknowledgment of improved pricing for platinum group metals.

Sibanye-Stillwater said it would offer one share for each Lonmin share compared to its previous offer of 0.967 shares. This represents an increase of 3.4 percent. The deal between Sibanye-Stillwater and Lonmin create the world’s No.2 platinum producer.

London-listed Lonmin is struggling as it was hit hard by the decline in platinum group prices and has had to work to cut spending in order to retain a positive balance sheet, required by conditions of Sibanye’s proposed offer.

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EPP

JSE-listed EPP, which invests in Poland’s retail real estate sector, has raised R1.45 billion through an accelerated bookbuild.

The company will use the proceeds from the raise to fund tranche two of its M1 portfolio transaction.

In December 2017, EPP announced the acquisition of 12 major shopping centres and retail parks (M1 portfolio) from Chariot Top Group B.V., a consortium where JSE-listed Redefine Properties owns 25 percent. The transaction aggregated value is €692 million (about R11 billion).

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Oryx Energies

Oil and gas-focused company Oryx Energies has acquired a majority stake in South African Marine Fuels (SAMF), a bunkering company in Algoa Bay, Eastern cape, South Africa.

Oryx Energies didn’t disclose the level of its shareholding or the value of it. Founded in 2016, SAMF is a woman-run enterprise with 100 percent South African staff operating at the only port in South Africa that has licensed offshore bunkering on the busy East-West routes.

Oryx Energies said SAMF will foster its active contribution to the local industry development and will pursue investing in local talents, in particular black women, and skills development.

Olam International

Singapore-based Global food and agri-business Olam International has submitted a binding offer to acquire 100 percent equity ownership of Nigeria’s Dangote Flour Mills (DFM) for 130 billion-naira (approximately US$ 361 million) on a debt free, cash free basis.  

DFM is a flour and pasta manufacturer in Nigeria, which is part of the business empire of Aliko Dangote, Africa’s richest man.

The proposed transaction would include DFM’s five strategically located facilities engaged in flour and pasta manufacturing, as well as its logistics capabilities including access to the ports of Apapa and Calabar.  

This acquisition is part of Olam’s strategy to strengthen its portfolio by investing in proven businesses where it has consistently performed and gained market leading positions.  

“The acquisition of DFM supports the strategy of the Grain and Animal Feed business, one of Olam’s prioritised platforms for growth, to expand our wheat milling capacity in high-growth markets, such as Nigeria,” said K.C. Suresh, Managing Director and CEO of Olam Grains and Animal Feed. “We are confident about the growth prospects in this country and this acquisition, doubling our installed capacity here, is evidence of our long-term commitment to the Nigerian economy. 

Phatisa

Phatisa, a private equity fund manager, has reached an agreement with Ma’aden on the sale of its controlling shareholding in Meridian Group (Meridian).

The value of the sale was not disclosed. Meridian is a prominent African agricultural inputs business, distributing approximately half a million tonnes of fertiliser across four countries. Meridian’s flagship fertiliser brand, Superfert, is available throughout Malawi, Mozambique, Zimbabwe and Zambia.

Phatisa said the Meridian executive team will remain with the business, partnering with Ma’aden, a diversified resources company, listed on the Saudi Arabian stock exchange. Phatisa initially invested expansion capital into Meridian in 2014