Latest news with #ZahidGroup
IOL News
23-04-2025
- Business
- IOL News
Public Investment Corporation accepts Zahid Group's R23bn bid for Barloworld, with conditions
A 550 kVA Cat C15 diesel generator set being assembled at Barloworld Power's Boksburg facility. The government-owned Public Investment Corporation has agreed to the Saudi Arabia-based Zahid Group's takeover offer of R120 per share, on condition a BEE scheme is implemented at the group. Image: Supplied The Public Investment Corporation (PIC) has accepted Saudi Arabia-based Zahid Group's $1.3 billion (R23bn) bid for Barloworld Group, but has set conditions to address its public interest concerns around the deal. The Zahid Group has proposed a R120 per share offer, which was a 30% premium on the share price at the time of the offer, but shareholders initially voted against the bid amid claims of governance irregularity, due to the participation of its CEO Dominic Sewela as part of the takeover consortium and claims of lack of transparency in the transaction, and despite the group's assertion that there were now governance breaches. However, in terms of the standby offer made in February, engagements took place between the PIC, and the PIC undertook to accept the standby offer of the R23bn acquisition of Barloworld, a statement said Wednesday. The PIC, the State-owned asset manager that manages primarily the Government Employee Pension Fund, owns 41.59 million shares in Barloworld, representing about 21.93% of the shares in issue. This means that shareholders holding 46.93% of Barloworld's shares have now undertaken to accept the standby offer. To address the PIC's broader public interest considerations regarding the offer, the bidding company said it would implement a 13.5% broad-based black economic empowerment transaction in Barloworld, after the delisting of Barloworld from the JSE and A2X. The commitment to implement the BEE transaction will only apply if the bidding company's squeeze-out right under section 124 of the Companies Act becomes capable of being exercised. This right allows a majority shareholder holding more than 90% of the shares, to compulsorily acquire the remaining shares from minorities. The bidding company will also offer the implementation of the BEE transaction to the competition authorities as a merger condition, failing which PIC's irrevocable undertaking may be terminated. The Independent Board established to oversee the transaction wrote in February: 'that management-led buyouts are not unusual in capital markets. Whilst recognising that such transactions do present an opportunity for conflict of interest in relation to the management members involved, the Independent Board also recognises that if properly managed, they could result in positive outcomes for shareholders of the company.' In the 5 months to end February, Barloworld's equipment Southern Africa operations saw its revenue decline 9% to R8.8bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 6% to R949m. The declines were ascribed to a slow recovery in the mining sector and the impact of civil unrest in Mozambique. In the group's Russia business, revenue fell 25.3% to $60.3m, while EBITDA fell 83% to $2.3m due to lower activity levels and curtailed inventory supply. Barloworld's share price surged 3.5% on the JSE on Wednesday morning, at a time when the JSE All Share Index was up by only 0.9%, following the announcement of the PIC's plan to accept the R120 per share offer for its Barloworld shares. BUSINESS REPORT
Bloomberg
10-03-2025
- Business
- Bloomberg
Saudi's Zahid to Reopen Talks With Barloworld's Shareholders
Saudi Arabia's Zahid Group will start fresh negotiations with the shareholders of South Africa's Barloworld Ltd., after an initial acquisition offer was rejected. The consortium led by Zahid will seek to buy as many shares as possible so that its stake exceeds 50% in the distributor of Caterpillar Inc. 's equipment in Africa, Zahid's head of investments, Augostino Sfeir, said in an interview. Zahid, which owns 19% of Barloworld, failed to get shareholder approval to acquire all the shares in the South African company, triggering a standby offer.
Yahoo
28-02-2025
- Business
- Yahoo
Barloworld Shareholders Reject Saudi Zahid's Takeover Plan
(Bloomberg) -- Barloworld Ltd.'s shareholders rejected a takeover plan by Saudi Arabia's Zahid Group. The Trump Administration Takes Aim at Transportation Research Shelters Await Billions in Federal Money for Homelessness Providers NYC's Congestion Pricing Pulls In $48.6 Million in First Month New York's Congestion Pricing Plan Faces Another Legal Showdown NYC to Shut Migrant Center in Former Hotel as Crisis Eases Zahid Group offered to buy all the shares of the South African company at 120 rand ($6.5) apiece, valuing it at about $1.25 billion. The deal failed to get the majority needed to pass, triggering a standby offer, the distributor of Caterpillar Inc's equipment in Africa said in a statement. Details of the standby offer will be announced in the coming days, Barloworld said. The company's shares dropped 2.5% as of 5:03 p.m. in Johannesburg. London-based investor Silchester International Investors LLP, which holds close to 18% of the company — said previously it would reject any price below 130 rand a share. Zahid's Gulf Falcon Holding Ltd. and Entsha Ltd., an entity linked to Barloworld Chief Executive Officer Dominic Sewela, announced the offer in December. At the time, the bid was a 30% premium on the day's closing price. The Saudi group started accumulating shares five years ago and holds a 19% stake. --With assistance from Khuleko Siwele. Trump's SALT Tax Promise Hinges on an Obscure Loophole Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience Walmart Wants to Be Something for Everyone in a Divided America China Learned to Embrace What the US Forgot: The Virtues of Creative Destruction Meet Seven of America's Top Personal Finance Influencers ©2025 Bloomberg L.P. Sign in to access your portfolio
Zawya
27-02-2025
- Business
- Zawya
South Africa's Barloworld shareholders reject Saudi firm Zahid's $1.25bn bid
Saudi Arabian company Zahid Group's bid to take over South African industrial giant Barloworld has hit a snag. Shareholders of Barloworld voted against the buyout plan of Newco, a consortium of investors that include Entsha and Zahid Group, on Wednesday. Last December, Barloworld confirmed Newco's intention to buy the company's entire issued share capital for ZAR 120 ($6.5) per share, valuing it at approximately $1.25 billion. The deal did not get the requisite majority of votes from shareholders, thus a standby offer has been triggered, the Johannesburg Stock Exchange-listed company said. Zahid Group is a distributor of heavy equipment machinery in the region. (Writing by Cleofe Maceda; editing by Seban Scaria)
