DealMakers SA 2021 Awards | Nominees – BEE Deal of the Year
The Ansarada DealMakers Annual Awards are just around the corner. The following are those deals shortlisted for the Exxaro BEE Deal of the Year 2021.
The DealMakers Independent Panel have selected these transactions from the nominations submitted by the M&A industry advisers.
They are, in no particular order:
Coca-Cola Beverages SA’s (CCBSA) BEE transaction
The deal by Coca-Cola Beverages Africa of the sale of a further 10% stake in CCBSA was one of several commitments agreed to as a result of a merger in 2016 with SABMiller. As part of the transaction c. 8,000 CCBSA employees now own c. 15% of CCBSA increasing its B-BBEE ownership to c.20%. The transaction, which was fully vendor funded and therefore not requiring employees to make an upfront investment, also undertook to create a localisation platform, deepening the level of transformation in the sugar value chain.
The local advisers to the deal were:
Rothschild & Co, Standard Bank, Bowmans and Webber Wentzel.
Anheuser-Busch InBev’s SAB Zenzele Kabili BEE transaction
The launch of the new empowerment transaction replaced the previous SAB Zenele deal which reached a total maturity value of R9,7 billion. SAB Zenzele Kabili listed on the BEE segment of the JSE in May 2021 with R5,4 billion worth of AB InBev shares. The listing not only facilitated liquidity and a broader ownership to other BEE investors, it enabled exposure not just to local operations, as was previously the case, but to the international markets in which the beer maker has a presence.
The local advisers to the deal were:
Rand Merchant Bank, Standard Bank Questco, Bowmans, ENSafrica, BDO and PwC.
Exxaro Resources disposal of Exxaro Coal Central (ECC)
The divestment of ECC, which consists of the Dorstfontein, Forzando and Tumelo operations, was undertaken using selection criteria which included value maximisation, broad based black ownership and sustainability of the new operator to manage the assets. An agreement was signed in April 2021 with Overlooked Colliery, a privately held and 100% black-owned mining entity with a strong track record operating three mines.
The local advisers to the deal were:
Absa CIB, Proximity Advisory, Tamela, CMS, Inlexso; Tshisevhe Gwina Ratshimbilani, Werksmans and Herbert Smith Freehills South Africa.
Northam Platinum’s BEE transaction
The complex deal comprised two inter-conditional components; the acceleration of the maturity of the BEE deal concluded in 2015, four years ahead of the maturity date and an extended 15-year 26,5% empowerment transaction to include Northam employees and communities (23%) and historically disadvantaged persons (3,5%) through a new listed empowerment vehicle. The offer consideration was settled in cash as opposed to shares and at a significant premium to face value, crystalising billions in value for BEE shareholders and resulting in a reduction in issued share capital, significantly strengthening the position of remaining Northam shareholders.
The local advisers to the deal were:
One Capital, Deloitte, Webber Wentzel, Cliffe Dekker Hofmeyr, BDO and EY
Join the South African Mergers and Acquisitions industry on Tuesday 22 February 2022 as it celebrates the achievements of 2021.
For more information visit www.dealmakerssouthafrica.com/2021-awards
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