Angolan authority clears Newco’s R23.3bn takeover bid for Barloworld, parties waive Comesa approval requirement
Angola’s competition authority has approved Newco’s proposed acquisition of Barloworld, fulfilling one of the key regulatory requirements for the transaction.
Initially, the only remaining approval was from the Common Market for Eastern and Southern Africa (Comesa). However, later on October 1, the parties announced that they had waived the Comesa condition, meaning all outstanding requirements have now been fulfilled or waived and the standby offer has become unconditional.
Newco, a special-purpose company formed to acquire Barloworld, is owned by a consortium including South Africa’s Entsha Proprietary and Saudi Arabia’s Zahid Group subsidiary Gulf Falcon Holding. Through this vehicle, the consortium has offered to acquire all Barloworld’s ordinary shares at R120 a share, valuing the company at about R23.3-billion. After adjusting for the R1.20 interim dividend paid on June 24, the net amount payable is R118.80 a share.
As of October 1, Newco had received valid acceptances for 77.6-million Barloworld shares, representing 41.6% of issued shares (excluding treasury stock). Combined with Newco’s and the Barloworld Foundation’s existing shareholdings, this gives effective control of 65% of Barloworld.
The standby offer remains open for acceptance until October 15, after which it will close. Payments to shareholders who accept the offer will occur in three stages: the first on October 8, the second on October 15, and the final on October 16.
“The Angolan competition approval fulfils yet another transaction condition. We expect the transaction to become unconditional in the coming days. Thereafter, we can commence conclusion of the transaction to fulfil our ambition of creating a strong platform to support the pursuit of Barloworld’s existing long-term diversified industrial growth strategy and deliver broad-based economic and value benefits,” Newco spokesperson Sydney Mhlarhi said earlier in the day.
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