Reunert announces two synergistic acquisitions
Monday, 15 February 2016
Reunert is pleased to announce the following two corporate actions. Both acquisitions fall below the threshold of the categorisation of transactions which require disclosure in terms of the JSE Limited Listing Requirements. Nevertheless, Reunert deemed it appropriate to inform stakeholders of progress made in its growth strategy. Financial detail of the purchases are not disclosed.
PURCHASE OFFER FOR MAJORITY SHARE IN ZAMEFA
Reunert, on behalf of CBI-electric: African Cables ("African Cables"), a subsidiary of Reunert, has entered into an agreement with General Cables Corporation of the United States of America in terms of which it will acquire 75,39% shareholding in Metal Fabricators of Zambia PLC ("Zamefa"), a Lusaka Stock Exchange listed entity. Due to the size of the shareholding being acquired by African Cables, a mandatory offer to minority shareholders of Zamefa will be undertaken post-closing of the acquisition.
Zamefa is a leading wire and cable manufacturer in Zambia and is recognised as a quality manufacturer of wire and cable products with one of the broadest product portfolios in the region. Zamefa's manufacturing facility is located in Luanshya on the Zambian Copperbelt near to its main copper cathode suppliers and is fully equipped with state-of-the-art manufacturing technology, equipment and facilities with world class production capabilities.
The acquisition is in line with Reunert's stated acquisition philosophy which supports bolt-on acquisitions. African Cables will be able to leverage off its South African, Zambian and Zimbabwean operations to capitalize on future electricity infrastructure growth expected in Africa, to enable consumer electrification and industrialisation growth, based on projected GDP growth and the number of planned generation projects in the African development pipeline. In addition, the acquisition of Zamefa will create a number of operational efficiencies which will enhance value for the Reunert group as a whole.
The acquisition is subject to the approval of various competition authorities in Africa.
OMNIGO ACQUISITION APPROVED
The Competition Commission has granted unconditional approval for the acquisition of Omnigo (Pty) Ltd by Reutech (Pty) Ltd. The transaction has been concluded and is effective from 14 December 2015. Omnigo will report under the applied electronics segment.
Omnigo produces integrated electronic assemblies and supplies specialised engineering to customers in the defence sector; including a number of Reunert companies.
This acquisition provides Reutech with improved intellectual property and increased efficiencies.