INCE CONNECT / 24 JANUARY 2020 - 15.55 / DEAL MAKERS - MARYLOU GREIG
The annual Ansarada DealMakers Gala Awards, now in its 20th year, has become an important fixture in the Mergers & Acquisitions industry calendar. It is attended by over 500 paying guests (which signals the importance of the event) and is held, this year, on February 18 in the Sandton Convention Centre's The Pavilion.
The occasion, organised to recognise and celebrate the achievements of the players in the deal-making industry during the previous year, is often referred to as the Oscars of the M&A Industry. Of the 65 awards presented on the evening there are just four subjective awards and these are nominated for inclusion by the firms involved and by industry peers. Winners for each category are chosen by the Independent Panel from the following shortlists.
The short list for the Exxaro BEE Deal of the Year 2019, are listed below. Congratulations to those teams who worked on the deals:
With the Awards just a few weeks away, take a closer look at those deals nominated for the Brunswick Deal of the Year 2019. These are, in no particular order:
Acquisition of Clover Industries by Milco Consortium
The R4,8 billion all-cash offer by the global investment consortium with strong local partners, aims to deliver and unlock growth, impacting not only the local dairy industry but also on the dairy industry across Africa. Milco is a key differentiator in today's challenging business environment with access to international brands and know-how, connections and operating experience in sub-Saharan business.
The local advisers on the transaction were: Rand Merchant Bank, Nedbank CIB, Werksmans, Cliffe Dekker Hofmeyr, Bernadt Vukic Potash & Getz, ENSafrica, Herbert Smith Freehills South Africa, Webber Wentzel and PwC.
Acquisition of Pioneer Foods by PepsiCo
The R23,63 billion transaction, one of PepsiCo's largest acquisitions outside the US, is a vote of confidence in the South African economy. PepsiCo intends to use SA as a hub for expansion throughout Africa. Through PepsiCo's global footprint, Pioneer Foods will have access to new markets and the opportunity to improve its ability to compete more effectively on the African continent and beyond.
The local advisers on the transaction were: PSG Capital, UBS, JPMorgan, Webber Wentzel, Bowmans, BDO and PwC.
Impala Platinum's acquisition of North American Palladium
The acquisition of the Canadian-based primary platinum group metal producer valued at R11,4 billion, is in line with Implat's strategy to reduce costs and streamline operation in order to improve its competitiveness in the global market. The transaction minimises the Group's reliance on SA for the bulk of its revenues.
The local advisers on the transaction were: Macquarie Advisory and Capital Markets South Africa, Nedbank CIB, Baker McKenzie and Webber Wentzel.
Naspers' unbundling and listing of Prosus
The two-step transaction by Naspers, one of several over the past few years, formed part of its strategy to reduce sum of the parts (SOTP) discount. The unbundling and listing of Prosus on the Euronext Amsterdam and the JSE (with an opening market capitalisation on the JSE of R1,95 trillion) created the largest consumer internet company in Europe, providing a significantly broader set of investors with direct access to its unique portfolio of high-growth international internet assets.
The local advisers on the transaction were: For the unbundling - Morgan Stanley, Investec Bank, Webber Wentzel and Glyn Marais. For the listing - Morgan Stanley, JP Morgan, Merrill Lynch, Goldman Sachs, Citigroup Global Markets, Investec Bank, Webber Wentzel, Glyn Maris and PwC.
The winning deal will be announced at the Ansarada DealMakers Gala Awards on Tuesday February 18, 2020
Criteria used for the selection of the shortlist for Deal of the Year:
Transformational transaction - does the deal or transaction transform the business or even the industry in which it operates? What is the extent of potential transformation as a result?
Execution complexity - does the overall deal or transaction involve multiple steps/a number of smaller inter-related deals? Are there numerous conditions precedent that need to be fulfilled? Does it involve many and/or complex regulatory approvals? Are there related debt/equity raising processes and how difficult are they to implement? Was there significant time pressure to conclude the deal/transaction? Did the deal/transaction exhibit innovative structuring?
Deal size - not an over-riding determinant but a significant factor.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER