Top deals making headlines this week

In focus this week: Vodacom, Alibaba, IBM, Sanlam, Development Partners International, Anglo American, and more.

Vodacom Group

Telecommunications group, Vodacom, is seeking shareholder approval to acquire a 26 percent stake in Vodacom Tanzania from Mirambo Holdings. A successful acquisition means that Vodacom would lift its stake in Vodacom Tanzania, from its current stake of 48.8 percent. The deal is subject to regulatory and shareholder approval. Vodacom will convene an extraordinary shareholder meeting to deliberate the deal.

Imperial Holdings

Logistics and automotive business, Imperial holdings, announced investor relations and corporate advisory firm Afropulse as its black economic empowerment partner in a R200 million transaction.

Afropulse would acquire a 25 percent stake in a yet-to-be-formed special purpose vehicle that will house Imperial’s logistics, energy, mining and chemicals businesses. Imperial said it expected the deal to be implemented by the end of the third quarter of the current financial year.

Development Partners International

Development Partners International (DPI), a Pan-African private equity firm with over $1.1 billion (R15.7 billion) of assets under management, has invested in Dolidol, Morocco’s and Ivory Coast’s manufacturer and distributor of mattress and bedding products.

DPI has purchased a 20 percent stake in Dolidol for an estimated $30 million (R430 million).The deal will allow Dolidol to execute its sub-Saharan Africa expansion strategy with an emphasis on West Africa, said DPI.

Eni 

Eni, an Italy-based oil and gas company, has signed an agreement with Sonatrach to purchase a 49 percent stake in three oil concessions in Algeria. The three oil concessions include Sif Fatima II, Zemlet El Arbi, and Ourhoud II.

Sonatrach, Algeria's state-owned oil company, will hold a 51 percent stake in the concessions, while the remaining 49 percent will be held by Eni. The two companies have also agreed on exploration activities on the blocks, which are estimated to hold 145 million barrels of oil.

Alibaba

Luxury brands group, Richemont, announced that it is forming a joint venture (JV) with Chinese online retailer Alibaba – four months after acquiring full control of luxury retailer Yoox Net-a-Porter (YNAP). 

The JV will see Richemont and Alibaba launch two mobile apps for two of YNAP’s brands, Net-A-Porter and Mr Porter, for consumers in China. Alibaba will provide technology infrastructure, marketing, payments, logistics, and other technology support to the JV.

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IBM

IBM has announced that it will buy Red Hat, the world's leading provider of open source cloud software, for $34-billion (R498 billion). The acquisition comes at a time when the company attempts to grow its exposure in the fast-growing cloud computing market. IBM will acquire all issued and outstanding common shares of Red Hat for $190.00 (R2 788) per share in cash, the company said.  

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Sanlam

Financial services group Sanlam announced that it was moving forward with plans to sell five percent of its ordinary share capital to new and existing black economic empowerment shareholders.  The proposed deal is worth between R7.4 billion and R8.6 billion. The targeted beneficiaries of the deal include Sanlam employees; professional black women; rural and urban poor black women groups; black youth; black business partners; and broad-based black groups.

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BHP Billiton

BHP Billiton plans to return $10.4 billion (R152.4 billion) to its shareholders through the combination of an off-market share buy-back and a special dividend, the company announced on Thursday. Returning US$10.4 billion through the combination of an off-market share buy-back and a special dividend will bring the total cash returned to shareholders to US$21 billion (R307.6 billion) over the last two years.

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Montauk 

JSE-listed Montauk Holdings said it has received approval from the South African Reserve Bank to move its primary listing to the Nasdaq stock exchange in the US.The proposed listing on the Nasdaq stock exchange will be achieved through a corporate restructure that will result in the formation of a new company, Montauk Energy, which will hold the company’s assets.

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Anglo American Platinum

Anglo American Platinum said it has completed the acquisition of Glencore’s stake in the Mototolo joint venture (JV) that is related to platinum assets. Glencore operations (the Mototolo JV) that Anglo American acquired include South Africa Proprietary Limited’s 40.2 percent interest and Kagiso Platinum Ventures Proprietary Limited’s 9.8 percent interest. The upfront purchase consideration to Glencore is nearly R1 billion for the Mototolo JV. 

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