Latest news with #ZahidGroup
Irish Times
10-06-2025
- Business
- Irish Times
Bidding war for Dalata Hotel Group hots up
A week ago, the board of Dalata Hotel Group rejected a €1.3 billion bid from the Nordic Pandox consortium , which had tabled a €6.05 a share, non-binding cash offer. Dalata, which is led by chief executive Dermot Crowley, said the bid 'materially undervalues the group and its prospects'. The market would seem to agree with the shares closing in Dublin yesterday at €6.25, some 3.3 per cent higher than the Pandox bid. The Irish hotel chain is at the stage of second round bids, having effectively put itself up for sale on March 6th by announcing a strategic review. Seems fair to assume that those bids place a higher value on the company than the Pandox offer. READ MORE The Pandox consortium comprises Swiss hotel operator Pandox and Norwegian real estate group Eiendomsspar, which has a stake of 8.8 per cent in Dalata and a near quarter stake in the bidding consortium. Eiendomsspar first emerged on the Dalata share register in October, the same month as Dalata held an investor day to outline its strategy as a listed company. Pandox's bid was a surprise, with the consortium bypassing the formal sales process in tabling its offer. Its 9 per cent stake isn't in blocking territory to a takeover of the company by a third party, but it could make life difficult for whoever emerges as the preferred bidder from the sales process. How to manage your pension in these volatile times Listen | 37:00 Two other entities – Zahid Group and Helikon – hold 28 per cent of Dalata's shares between them, putting them in blocking territory. Dalata is a well-run, profitable hotel group with a strong track record (Covid years aside). It has paid regular dividends and completed share buybacks, and outlined an ambition to grow its footprint to 21,000 bedrooms by 2030. Yet somewhere along the way, it appears that some long-term investors who weren't impressed by its growth strategy or its decision to pay €84 million for the Radisson Blu hotel at Dublin Airport decided to bail on the group, opening the way for Pandox, Zahid, and Helikon to build their stakes. This process has a long way to play out and a price closer to €7 a share might be required before a winner emerges. The only certainty is that Dalata will be checking out of the stock market.
IOL News
09-06-2025
- Business
- IOL News
Competition Commission recommends approval of Barloworld's R23bn acquisition
Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. Image: Supplied The Competition Commission has recommended that the Competition Tribunal approve the proposed R23 billion acquisition of Barloworld, subject to certain public interest conditions. This comes after the Public Investment Corporation (PIC), Barloworld's biggest shareholder with 21.93%, in April accepted the Standby Offer for the acquisition of all of Barloworld's ordinary shares for a cash consideration of R120 per share, with additional conditions, by the recently formed special purpose consortium, Newco. Newco on Monday said the recommended conditions principally relate to its commitment as stated in the PIC undertaking announcement to implement a 13.5% broad-based black economic empowerment transaction in Barloworld after the delisting of Barloworld from the JSE and A2X. Newco comprises Entsha Proprietary and Gulf Falcon Holding, a wholly-owned subsidiary of Zahid Group. The Commission's recommendation will now be considered by the Tribunal for approval. In addition to approval by the Tribunal, the Newco said the parties were continuing to work towards the fulfilment of the remaining conditions required for the transaction to become unconditional, including competition approvals from other jurisdictions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Shareholders will be advised in due course as to material developments in this regard. Sydney Mhlarhi, spokesperson for Newco, said the Competition Commission's positive recommendation was another vote of confidence in the transaction and allayed concerns around a lengthy time frame to conclude the deal. 'We strongly believe that the transaction is positive for South Africa and will secure Barloworld's long-term future. It unlocks a material and highly attractive premium for shareholders and will create broad based economic and value benefits through the BEE transaction. We look forward to concluding the transaction in the near future,' Mhlarhi said. Last month, the international heavy industrial equipment and food and ingredient solutions group agreed to extend the Standby Offer to 30 June 2025. The Standby Offer is currently open and Barloworld shareholders who wish to accept the offer are encouraged to instruct their Central Securities Depository Participants (CSDPs) or broker to accept the offer on their behalf ahead of the acceptance deadline of 16h30 on 30 June 2025, after which, Newco will assess the level of acceptances received by this date and decide whether or not it wishes to waive the acceptance condition in whole or in part. 'We are confident, based on recent and ongoing discussions with shareholders, in relation to the Standby Offer, that we will receive sufficient levels of acceptance to proceed with the transaction,' Mhlarhi said last month. Following the opening of the Standby Offer, Barloworld has received several inbound queries from ordinary shareholders who have indicated to their CSDPs or brokers that they wish to accept the Standby Offer but have been advised that they will only be able to do so at a later stage. Barloworld said there was no lawful basis for a CSDP or broker to delay in accepting the Standby Offer on behalf of the shareholder in question, adding that CSDPs and brokers must review their processes to ensure that instructions in relation to the Standby Offer were processed without delay and appropriate confirmation was sent to the relevant shareholder once their instructions have been processed. 'The Standby Offer remains open and the timing for the implementation of the transaction will depend on acceptance levels of the Standby Offer and receipt of the required regulatory approvals,' it said. 'Barloworld Ordinary Shareholders should note that if Newco does not receive sufficient acceptances of the Standby Offer by 30 June 2025 to satisfy the Acceptance Condition, Newco may not waive the Acceptance Condition, in which event the Standby Offer will fail. Accordingly, Barloworld Ordinary Shareholders who have decided to accept the Standby Offer but have not yet done so should note that failing to accept the Standby Offer by 30 June 2025 may result in the Standby Offer failing.' BUSINESS REPORT
IOL News
09-06-2025
- Business
- IOL News
Barloworld's R23 billion sale inches closer as deal gets CompCom go ahead
Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. Image: Supplied Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. On Monday, the industrial company said that it had been granted Competition Commission approval to go ahead with the sale of a 40.93% stake to Entsha, which is ultimately owned by Dominic Sewela, as well as the Saudi Arabian company, which operates across 14 sectors in 33 countries. The consortium continues to woe investors to sell the balance of the listed industrial company, which has the sole rights to distribute Caterpillar in Southern Africa. Sewela's position as CEO of JSE-listed Barloworld was a bone of contention with the Public Investment Corporation (PIC), which had expressed concerns about a lack of transparency from the company. He will indirectly own a 51% stake in the consortium via an inter vivos trust. The Zahid Group will own the balance. The Competition Commission has now recommended the Competition Tribunal approve the deal, subject to certain conditions. These include the consortium implementing a 13.5% broad-based black economic empowerment transaction at Barloworld after the company is delisted on the JSE and A2X. Should the deal ultimately go ahead, Barloworld, an iconic South African company, will delist from the JSE after 84 years as a public company. Founded in 1902 as Thomas Barlow & Sons, the company has changed from being a family business selling woollen goods to a major industrial conglomerate with operations in 16 countries. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Because the initial scheme of arrangement failed towards the end of February, a Standby Offer, which was contingent on the scheme's success, was triggered. Although the PIC's concerns have been resolved, shareholders still have until the end of the month to vote on the Standby Offer. This Standby Offer could see the consortium increasing its stake from a currently committed 40.39% - including the PIC's 21.93% - to 100%. Caterpillar is in support of the deal. 'In addition to the approval of the Tribunal, the parties are continuing to work towards the fulfilment of the remaining conditions,' Barloworld said in a statement to shareholders on Monday morning. It said it would update shareholders on any material developments. IOL
IOL News
09-06-2025
- Business
- IOL News
Barloworld's R23 billion sale inches closer as deal gets CompCom go ahead
Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. Image: Supplied Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. On Monday, the industrial company said that it had been granted Competition Commission approval to go ahead with the sale of a 40.93% stake to Entsha, which is ultimately owned by Dominic Sewela, as well as the Saudi Arabian company, which operates across 14 sectors in 33 countries. The consortium continues to woe investors to sell the balance of the listed industrial company, which has the sole rights to distribute Caterpillar in Southern Africa. Sewela's position as CEO of JSE-listed Barloworld was a bone of contention with the Public Investment Corporation (PIC), which had expressed concerns about a lack of transparency from the company. He will indirectly own a 51% stake in the consortium via an inter vivos trust. The Zahid Group will own the balance. The Competition Commission has now recommended the Competition Tribunal approve the deal, subject to certain conditions. These include the consortium implementing a 13.5% broad-based black economic empowerment transaction at Barloworld after the company is delisted on the JSE and A2X. Should the deal ultimately go ahead, Barloworld, an iconic South African company, will delist from the JSE after 84 years as a public company. Founded in 1902 as Thomas Barlow & Sons, the company has changed from being a family business selling woollen goods to a major industrial conglomerate with operations in 16 countries. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Because the initial scheme of arrangement failed towards the end of February, a Standby Offer, which was contingent on the scheme's success, was triggered. Although the PIC's concerns have been resolved, shareholders still have until the end of the month to vote on the Standby Offer. This Standby Offer could see the consortium increasing its stake from a currently committed 40.39% - including the PIC's 21.93% - to 100%. Caterpillar is in support of the deal. 'In addition to the approval of the Tribunal, the parties are continuing to work towards the fulfilment of the remaining conditions,' Barloworld said in a statement to shareholders on Monday morning. It said it would update shareholders on any material developments. IOL
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
