Top deals making headlines this week

In focus this week: South32, Sebata, Implats and more.

South32

South32 has entered into exclusive negotiations with Seriti Resources for the sale of its SA Energy Coal business, confirming market speculation about the transaction.

South32 is a diversified mining company that was spun off from BHP in 2015, and SA Energy Coal, which is headed by long-standing coal executive Mike Teke, is a thermal coal business. On Thursday, with the release of its annual results, the company announced that Seriti Resources was the exclusive bidder for SA Energy Coal.

SA Energy Coal assets include the Khutala and Klipspruit collieries and the Wolvekrans Middelburg Complex. If the deal is concluded, Seriti Resources would be one of South Africa’s largest coal producer along with Exxaro Resources. South 32 did not disclose the price of the deal as it was still in talks with Seriti Resources. Read more here

Sebata

South Africa-based technology group, Sebata, has announced plans to sell a majority stake of its subsidiary, the Water Group, to Inzalo Capital Holdings for R388.4 million.

The sale is in a bid to improve Sebata’s empowerment credentials, according to a report by Business Day. Sebata, which specialises in servicing the public sector, has sold a 55 percent stake in the Water Group, which comprises USC Metering and Amanzi Meters. A further five percent stake will be donated to Inzalo by Sebata.

The deal will boost Sebata’s broad-based black economic empowerment ratings and create shareholder value, Sebata said. Read more here

Implats 

Impala Platinum (Implats) has relinquished control of its Sunday Lake exploration prospect in Canada to North American Palladium (NAP).

Implats is the world’s third-largest platinum miner, with mines in South Africa and and Zimbabwe. NAP has vested a 51 percent interest in the Sunday Lake project, leaving South African platinum major Impala Platinum (Implats) with a 24 percent shareholding, down from 75 percent.

NAP paid Implats R15 million to increase its stake in the Sunday Lake exploration prospect as the latter wants to focus on bringing its core mines around Rustenburg to profit. Read more here

Adrenna Property 

South Africa-based real estate company Adrenna Property Group said it will pay out R26.2 million to buy out shareholders and delist from the Johannesburg.

Adrenna will make a R1.30 per share cash offer to shareholders, which represents a 35.1 percent premium to the 30-day average of 96.25 cents per share up to August 15.

Adrenna’s management said they wish to delist because the company, which is focused on the investment and growth of income producing properties, has had no reason to resort to the market to raise funds since listing in January 1999, other than a vendor placement in June 1999. Adrenna owns just one property, which is a commercial industrial complex in the Western Cape. Read more here

Centum Investment

Kenya-based Centum Investment has concluded an agreement to sell all its shareholding in King Beverage to Danish Brewing Company.

Centum held 100 per cent of the issued shares of King Beverage, which is in the business of sale and distribution of various alcoholic beverages. Danish Brewing is a private limited liability company incorporated in Kenya and a subsidiary of Bounty Global Management.

King Beverage is associated with the distribution of Carlsberg beer. In 2016, it won distributorship of several world-class drinks such as the Jim Beam, Courvoisier, Teacher’s and Laphroaig single malt among others. The value of the deal was not disclosed.

PowerGen Renewable Energy

Off-grid power solutions developer PowerGen Renewable Energy has acquired Tanzania-focused mini-grid company Rafiki Power from its parent company, Germany utility giant E.on SE. The two African companies want to use their newly-combined clout to build “momentum for private utilities” on the African continent.

PowerGen, which develops, builds and operates micro-utilities and claims to serve more than 10,000 customers across several African countries, will take over Rafiki’s assets, which include eight Tanzanian solar-plus-storage mini-grids that serve 950 customers, as well as a project pipeline, the intellectual property of its software, and staff.

Aaron Cheng, PowerGen president, said in a statement: “PowerGen and E.ON Off-Grid Solutions have shared a common vision for a long time: to transform lives by building the energy system of the future in Africa.  We are excited to combine our experience, knowledge, resources, and cultures in order to further our progress towards this shared vision.”