Top deals making headlines this week

In focus this week: Naspers, JSE, Redefine Properties, Imperial and more.

Naspers

Africa’s largest technology company by market capitalisation Naspers said on Monday that a newly created entity containing its international internet assets would be valued at about $100 billion (about R1.52 trillion).

Naspers recently won shareholder approval to forge ahead with the listing of its Prosus in Amsterdam in September, a new entity that will include its stake in Chinese internet giant Tencent. Alongside the Tencent stake, the new company will hold businesses from Brazil to Germany in industries such as online food delivery and classified advertising. Read more here.

JSE

South Africa’s Johannesburg Stock Exchange (JSE) plans to acquire 74.85 percent of Link Market Services South Africa (Link SA) from Australian parent company Link Market Services for R224-million. Link South Africa’s black economic empowerment partner will retain its existing 25.15 percent shareholding in the company.

The JSE, which is battling with weak trading volumes as foreigner investors sell off their assets in favour of other developing and developed markets, said the proposed transaction supports its strategy to strengthen its relationships with issuers and to grow sustainably across the issuer services value chain. Read more here

Redefine Properties

The proposed merger between two of South Africa-based real estate companies, Delta Property Fund and Rebosis Property Fund, has hit a snag, with Redefine Properties saying it is against the deal.

Redefine Properties, which was previously a shareholder in Delta until it sold its interest to a BEE consortium, said in a pre-close presentation on Monday that it did not support the merger and would advise shareholders to vote against it. Redefine sold its 22.8 percent stake in Delta to BEE consortium Cornwall Crescent for R1.46 billion in 2017. Redefine said it had started talks with Delta Property Fund “regarding non-support” for Delta’s potential merger with Rebosis. Read more here.

Imperial Logistics

South Africa-based Imperial Logistics is considering selling its noncore shipping business in Europe as it did not support its Africa-focused growth strategy. The potential sale is also part of its strategy to overhaul its operations.

Chief Executive Mohammed Akoojee has unveiled a further restructuring and rationalisation plan for Imperial that includes exiting unprofitable contracts, consolidating operations and properties and reducing fleet and overheads. Imperial decided at the end of May to exit the consumer-packaged goods business and sell assets and said on Tuesday that the model had become uncompetitive and unsustainable as retailers centralise their distribution networks. Read more here

Zeder Investments

Agribusiness group Zeder Investments said it has agreed to buy 40 percent of a seed company focused on east and central Africa.

Zeder’s Zaad subsidiary had agreed to acquire a 40 percent stake in the EAS group of companies, with an option to acquire an additional stake in the future, Zeder said. EAS, an independent seed company, operates in Kenya, Uganda, Rwanda, Tanzania and Zambia.

The company will be flush with cash as it expects to realise R6.4 billion by selling its stake in Pioneer Foods to PepsiCo. Zeder has a 28.23 percent stake in Pioneer Foods, the owner of brands such as Sasko bread and Ceres juices.  In July, New York-based food and beverages giant PepsiCo said it will acquire Pioneer Foods for $1.7 billion, its biggest deal in Sub-Saharan Africa. Read more here

Safari

South Africa-based real estate company Safari Investments said shareholders are “highly unlikely” to approve its takeover by Community Property (Comprop). Comprop is an unlisted group, which offered to buy Safari outright for R1.8 billion in July.

On Monday, Safari said on Monday that shareholders holding more than 25 percent of its shares had said they would vote against Comprop’s offer to pay a cash price of R5.90 per Safari share. The deal requires 75 percent shareholder support to go through. Read more here

CompCare Wellness Medical Scheme and Selfmed

Two of South Africa’s medical schemes, CompCare Wellness Medical Scheme and Selfmed, have been given the green light to amalgamate by the Council for Medical Schemes (CMS). CMS is a statutory body meant to regulate medical schemes in South Africa.

The merger comes after the members of the two schemes voted in favour of the amalgamation and the establishment of a new scheme, which will be known as CompCare Wellness Medical Scheme. Commenting on the announcement, Josua Joubert, Chief Executive and Principal Officer of CompCare, said that the amalgamation was proposed in order to strengthen the two schemes and to ensure ongoing value for members. Read more here