JSE-listed industrial group Barloworld has advised that the Public Investment Corporation (PIC) has delivered to a Saudi Arabian group associated with Barloworld CEO Dominic Sewela an undertaking to accept a standby offer in respect of 41-million ordinary shares in Barloworld owned by the PIC.
This constitutes about 21.93% of Barloworld’s ordinary shares in issue.
The offering company, which is made up of Entsha Proprietary and Gulf Falcon Holding, the latter being a wholly-owned subsidiary of Saudi-based Zahid Group, in December announced an intention to buy out all of Barloworld’s shares for R23-billion, or R120 a share.
The consortium, following engagements with the PIC, has also committed to implement a 13.5% broad-based black economic empowerment transaction in Barloworld after delisting Barloworld from the JSE and A2X markets.
However, only 37% of Barloworld’s shareholders voted in favour of the transaction in February. The PIC itself voted against the proposed takeover of Barloworld, citing concerns about corporate governance standards.
The consortium led by Zahid sought to buy as many shares as possible so that its stake exceeds 50% in Barloworld, compared with its 19% shareholding. After failing to get shareholder approval to acquire all the shares in the company, it triggered a standby offer, which the PIC has now accepted.
Once the Zahid consortium buys out PIC’s stake, its ownership in Barloworld will increase to 40.93%. 