Barloworld’s takeover regulation panel has granted the JSE-listed international heavy equipment distributor an extension permitting the circular with the details of the R2.9 billion buy-out offer.
This comes as Barloworld CEO, Dominic Sewela, and the Saudi Arabian family-owned business, Zahid Group, firmed up an offer for all of the group’s shares at a whopping 87% premium to the share price last month.
The offer, which will lead to the delisting of Barloworld if it goes ahead, values Barloworld at R23bn and represents a total value unlock at R123.10 per share, comprising a cash offer to shareholders of R120 per share, which will not be reduced by the R3.10 per share dividend already declared by Barloworld on November 22.
Barloworld and Newco intended jointly issuing a circular to shareholders containing the full terms and conditions of the scheme and the standby offer and including the notice to convene the Barloworld General Meeting to consider and, if appropriate, approve the scheme resolution.
The circular was required to be distributed to Shareholders within 20 business days from the date of the firm intention announcement published on the JSE Stock Exchange News Service on 11 December 2024, as specified in the takeover regulations.
However, Barloworld said the finalisation and approval process of the circular has been delayed and the parties will not be in a position to distribute the circular to shareholders within 20 business days from the date of the FIA, owing to the holiday period in South Africa in December.
“Shareholders are advised that the Takeover Regulation Panel has granted an extension permitting the Circular to be distributed to Shareholders by no later than 11 March 2025,” Barloworld said.
In December, Barloworld said that if the deal is successful, it would bring together “long-term committed investors for Barloworld and create a majority black-owned, privately held South African company.”
The plan was for Barloworld to retain its name and remain head-quartered in South Africa, and no job losses were foreseen. The proposed deal demonstrated investor confidence in South Africa, they said, and Barloworld’s Independent Board intended to recommend that shareholders vote in favour of the scheme.
Barloworld said the R2.9bn Khula Sizwe broad-based vehicle would retain its shareholding and maintain its commercial arrangements with Barloworld, ensuring the 29 000 Khula Sizwe majority black beneficiaries—comprising current and former Barloworld employees as well as public shareholders—continued to benefit post the deal.
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