Top deals making headlines this week
In focus this week: SABC, MultiChoice, Discovery, Vodacom, PSG Konsult, Tsogo Sun and more.
SABC and MultiChoice
South Africa’s Competition Commission has ruled that a R500 million channel distribution agreement between the SABC and MultiChoice, which was signed in 2013, constitutes a notifiable merger.
The competition watchdog wants the SABC and MultiChoice to formally register the transaction as a merger under the Competition Act. A failure to do so would be in violation of competition laws. The five-year agreement gave MultiChoice the right to broadcast SABC’s 24-hour news channel and an entertainment channel, SABC Encore.
MultiChoice said that its 2013 agreement with the SABC was not a merger and plans to challenge the commission's decision.
Discovery said it will launch the world’s first behavioural bank in March 2019, which is set to give a different banking experience.
The bank will incorporate the financial behaviour of its clients to offer rewards that include favourable interest rates on savings and borrowings. Discovery’s bank will be open to members of the public and not only its existing clients. The bank’s client base will start with the 350,000 Discovery cardholders and the 3.5 million members of Discovery Health. The bank will be launched at a time when new banks are in the process of being launched such as TymeBank and Bank Zero.
The takeover of 9mobile, Nigeria’s fourth-biggest telecommunications operator, by Teleology, an investment holding company, has been approved by the country’s telecoms regulator.
The approval of the deal ends a bidding process for 9mobile, which started a year ago. Teleology, which initially made a $50 million non-refundable deposit to acquire 9mobile, has been given final approval by the board of the Nigerian Communications Commission to own the company. Read more here.
Vodacom Tanzania shareholders approved the sale of a 26 percent stake owned by Mirambo Holdings during an extraordinary annual general meeting to South Africa's Vodacom Group, according to Reuters.
This deal will result in Vodacom Group increasing its total interest in Vodacom Tanzania from 61.6 percent to 75 percent. The deal was subject to regulatory and shareholder approval. Read more here.
PSG Konsult, the wealth and asset management unit of PSG Group, has received approval for a secondary listing on the Stock Exchange of Mauritius (SEM). PSG Konsult said it has been granted permission for the secondary listing of its entire issued share capital, currently comprising 1 364 885 118 ordinary shares – a move that will increase its international presence.
The listing of PSG Konsult shares in Mauritius is expected to occur on November 27, 2018. Read more here.
Hotel and gaming group, Tsogo Sun, has called off its plans to sell its seven casino and hotel properties to real estate group Hospitality Property Fund due to the lack of support from shareholders. The deal was worth R23 billion.
“The sale of shares and subscription agreement has been terminated by agreement between Tsogo, Hospitality and the remaining parties to that agreement,” Tsogo said in a statement. Read more here.
JSE-listed industrial group Torre Industries said a consortium has expressed a firm intention to make an offer to acquire 100 percent of its total issued ordinary share capital.
A successful buyout of Torre Industries means that the company will delist from the JSE. Torre Industries said the consortium that intends to buy its shares comprises Main Street 1641, a special purpose vehicle established by Ethos Mid-Market Fund, and investment banking firm Apex Partners. Read more here.
Seacom, a telecommunications services and infrastructure provider, has agreed to buy 100 percent of fibre provider FibreCo for an undisclosed sum, in a deal that is set to expand its African footprint.
FibreCo owns and operates a national open access dark fibre network, providing infrastructure, connectivity and services across South Africa. FibreCo was founded nine years ago by Convergence Partners, Internet Solutions and Cell C. Read more here.
Levi Strauss & Co, the 145-year-old company credited with creating the first pair of blue jeans, is planning an initial public offering (IPO) that would value the company at $5 billion (R71.2 billion), sources have told CNBC. The company, which plans to raise about $600 million (R8.6 billion) to $800 million (R11.4 billion), is likely to go public in the first quarter of 2019, sources told CNBC. Read more here.
Lion of Africa
Short-term insurer, Lion of Africa Insurance, which is a subsidiary of JSE-listed Brimstone, has decided to voluntarily wind down its operations with immediate effect, citing a lack of profitability and tough economic market. Lion of Africa, which offers insurance policies to small and medium-sized enterprises and public-sector entities, said its business has also suffered from an onerous regulatory environment and increased solvency requirements. Read more here.