Posted on

South Africa: Imperial Buyout Offer – Foreign Investors Continue to Support SA Inc By Purchasing ‘Cheap’ Companies

JSE-listed logistics giant Imperial is the latest to be targeted by Dubai-based DP World, which has tabled an all-cash R12.7-bn buyout offer. DP World is one of the world’s largest operators of marine ports, inland cargo terminals and logistics centres.

Foreign investors are again looking at the JSE for buyout opportunities, taking advantage of share valuations that have been decimated by the Covid-19 pandemic.

Dutch brewing company Heineken has not been deterred by SA’s five bans on alcohol sales since the start of the Covid-19 as it recently expressed an interest in acquiring Distell, the maker of brands including Klipdrift brandy, Savanna cider and JC le Roux sparkling wines.

JSE-listed logistics giant Imperial is the latest to be targeted — by Dubai-based DP World, which has tabled an all-cash R12.7-billion buyout offer. On Thursday, DP World said it had offered Imperial shareholders R66 per share — a 39.5% premium to Imperial’s close of R47.30 on Wednesday.

Imperial shares finished 34% higher on Thursday to R63.25, adding R3.3-billion to its market value (R12.8-billion). The approval of the deal by Imperial shareholders and South Africa’s competition authority will result in the delisting of the company from the JSE after 34 years.

“Foreign…