new R6.2bn bid for consol
Posted 19 December 2006
Johannesburg - South African glass manufacturer Consol received a firm offer of R19.50 a share for the company from an affiliate of private equity group Brait South Africa, Consol said on Monday.
Consol said in a statement that its board had decided not to proceed with a competing offer from a consortium led by Ethos Private Equity, and that the new offer had the support of shareholders representing 24.61% of the company's shares.
The Brait offer values Consol at R6.2bn, compared with a R6.08bn valuation by the Ethos-led consortium.
"The board has resolved not to proceed with the convening of the scheme meeting in respect of the Ethos offer as the new offer contains more attractive terms and in addition has a material level of support from shareholders," the company said.
Brait private equity director Bruce Baisley said the firm felt Consol was a great company, with good market positioning. "We have looked at the company since April, and felt it was attractive for private equity buyout," he said.
Under the Brait offer, Consol shareholders will be offered cash or an opportunity to retain an investment in the company, by electing to receive the offer by way of a combination of cash and shares in the Brait affiliate, Newshelf 809.
Consol said the Brait-led offer had received conditional undertakings to support it from Investec Asset Management, a unit of Investec Ltd, the Public Investment Corporation (PIC) and Old Mutual units Old Mutual Life Assurance Company and Old Mutual Asset Managers.
The Public Investment Commission owns an additional 11.56% of Consol shares, which is managed by third party fund managers, and has given an undertaking to vote the shares in support of the Brait offer, Consol said.
In order for the transaction to go ahead, 75% of Consol shareholders need to vote in favour of the proposal.
Reuters, fin24.co.za