Top deals making headlines this week

In focus this week: Prosus, Distell, Capital & Regional,Air Algérie and more.  

Prosus

Naspers’s new international listing of its internet businesses, called Prosus, surged by a third on its stock market debut in Amsterdam on Wednesday, valuing it at about R1.9-trillion.

The listing of Prosus is a significant event for the JSE and Naspers, as it will see the unbundling of the group’s international internet businesses, including its 31 percent stake in Tencent. Naspers will retain a stake of around 73 percent in Prosus.

Prosus comprises South African group Naspers’ global empire of consumer internet assets, including the stake in Tencent, the world’s biggest video game company and home to China’s hugely popular WeChat social media platform. Read more here

Distell

Listed beverage company Distell has hauled the world’s largest brewer, AB InBev, and SABMiller before South Africa’s Competition Tribunal for allegedly breaching conditions for the 2016 merger between the two companies.

The Competition Tribunal conditionally approved the multi-billion dollar merger between AB-InBev and SAB Miller in June 2016. Distell had participated in the hearing at the time and made submissions in relation to conditions that were ultimately imposed on the merger, the Competition Tribunal said in a statement.  
 
Distell recently approached the Competition Commission on the alleged breach of conditions alleging, among others, that the merged entity removed competitors’ advertising material from outlets. The Commission found that the conditions had not been breached. Read more here

Capital & Regional

South Africa-based real estate company Growthpoint Properties is in talks to acquire a majority stake in UK regional shopping centre landlord Capital & Regional.

Capital & Regional said in a statement on Wednesday that the talks involved Growthpoint making an offer in cash for Capital & Counties shares, and an injection of capital to support the company’s strategy through a subscription for new Capital & Regional shares.Capital & Regional owns shopping centres in Blackburn, Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood Green in the UK. Read more here

Air Algérie 

Algeria’s national carrier Air Algérie is interested in acquiring its main rival on Algeria-France route, Aigle Azur, which has grounded its aircraft over bankruptcy.

A source from the state-owned airline told local media TSA that management is keen to acquire its rival and its installations in France where it operates from. The intentions have been confirmed by the airline CEO, Bekhouche Allache who told the media that they have funds to buy sluggish airline, and only wait for the Algerian state to decide. Read more here

Basil Read

Basil Read, a South Africa-based construction firms, announced the sale of properties in Ekurhuleni on Friday as part of a strategy to dispose of non-core assets in the group.

Basil Read and its construction peers in the construction industry have experienced a shortage of major projects amid a downturn in the South Africa economy and a deterioration of the country’s public finances. Basil Read, which went into business rescue in June 2018 – a bankruptcy protection measure, said the sale of the Ekurhuleni properties represented non-core assets as contemplated in the company’s business rescue plan.

Thunderstruck, a company in which Basil Read Holdings held a 50 percent stake, is selling various properties in Ekurhuleni for R136 million. Read more here

Intu Properties

Intu Properties, the Johannesburg Stock Exchange-listed real estate company, is reportedly exploring a buyout deal after a challenging period for its shopping centres that have been impacted by uncertainty around Brexit. Intu owns shopping malls in the UK such as Manchester’s Trafford Centre and Intu Lakeside in Essex.

Private equity firm Orion Capital Managers is thought to be a frontrunner in the buyout process, according to a report by The Sunday Times. Orion currently holds 9.2 percent of shares in the business. Read more here