Top deals making headlines this week
In focus this week: Delta Property Fund, Prosus, Orion Minerals, Anglo American and more.
Delta Property Fund
Delta Property Fund, a South Africa-based real-estate group, has sold shares in Grit Real Estate Income Group worth R104.4 million, so it can reduce debt and supplement its capital spending.
Delta sold some 6.5-million shares in Grit, the only pan-African property fund listed on the Johannesburg Stock Exchange, for R16.06 a share in an off-market transaction, with the move reducing its shareholding in that property counter to 5.7 percent, from 7.8 percent.
Grit was co-founded by Delta CEO Sandile Nomvete (pictured) and was called Delta International, then Delta Africa before being renamed Mara Delta after a merger with Mara Diversified Property Holdings. It was rebranded as Grit in 2017. Grit, which is listed on the London Stock Exchange, is led by Bronwyn Corbett. Read more here.
South Africa’s Naspers, Africa’s most valuable company, said on Wednesday it sold around €1.5 billion (R24 billion) worth of shares in Prosus, the Amsterdam-listed subsidiary housing its internet empire. Last year, Naspers spun off Prosus along with its most valuable asset - a 30 percent stake in Chinese internet giant Tencent. Prosus is led by Bob van Dijk.
The South African company said on Tuesday, when it announced the share sale, that it had seen significant interest in Prosus from new investors and the placing would offer “an opportunity to the broad investment community to get exposure” to the stock.
The e-commerce group sold about 22 million Prosus shares, priced at 67.5 euros per share, on Tuesday via an accelerated bookbuild to institutional investors. This increased Prosus’ free float to 27.5 percent from 26.2 percent, and reduced Naspers’ holding to 72.5 percent. Read more here.
Orion Minerals Limited has begun a formal process that may lead to the introduction of a strategic project-level equity partner and investor in its flagship Prieska Copper-Zinc Project in South Africa.
These include unsolicited approaches from interested parties which could potentially enhance project value through the provision of technical or financial support. Whilst development of the project, slated to cost A$378 million or some R3.73 billion, did not turn on attracting a partner, Orion said a third partner would help minimise dilution for its shareholders. After flagging the possibility of introducing a joint venture partner in December, discussions had now taken place, it said. Read more here.
Investment group Labat Africa, which recently entered into the booming cannabis industry after securing a trading licence in Lesotho and also purchasing two local companies that operate in that sector, said on Thursday it had agreed to buy a business that offers training and education for cannabis production for R15 million.
Labat Africa said it will acquire a 70 percent interest in a business to be known as CannAfrica for R15-million, to be settled through the issue of 15-million ordinary Labat Africa shares, at an issue price of R1 per share.
The remaining 30 percent will be held by Herschel Maasdorp who, will be appointed CEO of the retail division of Labat Healthcare. Read more here.
Mining company Anglo American said on Monday it had reached agreement on the terms of a recommended cash transaction in which its subsidiary Anglo American Projects (Bidco) would acquire the entire issued share capital of Sirius Minerals.
Anglo, which announced earlier in January it was in advanced discussions to buy Sirius, said the acquisition valued the entire issued and to-be-issued share capital at about £404.9 million (R7.6 billion). “Bidco and Sirius intend to work together [to the extent legally permissible] to engage constructively with relevant stakeholders,” it said.
Last September, Sirius said it was undertaking a strategic review to assess the development plan for its North Yorkshire polyhalite project, including a broader process to seek a major strategic partner. Read more here.
Indebted shopping centre owner Intu Properties confirmed it would push ahead with a capital raise thought to be worth as much as £1 billion (R19 billion).
Intu, which owns shopping centres including the Trafford Centre in Manchester and Lakeside in Essex and is listed on the Johnnesburg Stock Exchange, said it would attempt to tap investors for funds alongside its full-year results at the end of the February, confirming reports.
The company has been hit by the weak backdrop for high street retailers, with struggling groups including Arcadia and Debenhams occupying a lot of space in its centres. While Intu did not confirm how much it planned to raise, the figure is thought to be around the £1 billion (R19 billion) mark. Read more here.
African Rainbow Capital
African Rainbow Capital (ARC), a South Africa-based investment holding firm owned by billionaire Patrice Motsepe, is set to become the new majority shareholder at Alexander Forbes, after announcing plans to buy over R1 billion of the pension fund administrator’s shares.
Alexander Forbes announced on Wednesday that its largest shareholder, Mercer Africa, which owns a 34 percent stake, intends to dispose of its entire investment of 442.8-million shares in Alexander Forbes Group Holdings.
In a statement posted just before Alexander Forbes' late on Wednesday, ARC said it was going to buy 193 million shares from Mercer Africa for R1.013 billion. This will take ARC’s stake in the pension fund administrator to 28.6 percent. Read more here.