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The Ansarda DealMakers Annual Awards are just a few short weeks away. Take a look at those deals shortlisted for the Brunswick Deal of the Year 2020.

Gold medal sponsored by Sibanye-Stillwater
Nominations were received from advisory firms which together with nominations from the DealMakers editorial team were passed on to the Independent Selection Panel who produced a shortlist of three deals.

They are, in no particular order:
Shortlisted nominees for the
Brunswick Deal of the Year 2020
Sasol disposal of a 50% stake in Lake Charles Chemicals Project 
The $2 billion (R33 billion) joint venture deal was part of Sasol’s plan to reduce debt, improve debt covenant compliance and enhance liquidity after a series of cost overruns and delays at its Lake Charles chemicals project were exacerbated by the collapse in the oil price and a global economic slowdown as a result of the COVID-19 pandemic. The deal cuts debt to $8 billion from $10 billion, gives the company an opportunity to stay in while shifting its portfolio toward specialty chemicals and increases its focus on an area where the company enjoys differentiated capabilities and strong market positions.

The local advisers to the deal were: Merrill Lynch, ENSafrica, PwC, KPMG and Deloitte.
The Foschini Group’s acquisition of JET 
Edcon, the owner of value retailer JET filed for administration in May 2020 after losing R2 billion in sales as a result of SA’s lockdown restrictions. The R480 million cash deal sees The Foschini Group (TFG) acquire 382 select stores across SA, Botswana, Lesotho, Namibia and Eswatini and take on 4,800 of its staff. The deal gives TFG a significant entry into an increasingly important value retail sector, at scale and at an attractive price which would have been costly and difficult to replicate organically. 

The local advisers to the deal were: Rand Merchant Bank, UBS, ENSafrica, EY and Matuson Associates.  
Tongaat Hulett’s disposal of its starch division to Barloworld
The announced R5,35 billion February 2020 acquisition for Barloworld was in line with its focus to transform its investment portfolio to focus on Industrial Services and Consumer Foods as key verticals. However in May and again in August, as a result of the impact on company earnings of COVID-19 and the strict lockdown, Barloworld issued a MAC (Material Adverse Change) notice to Tongaat, increasing the complexity of the transaction. The final determination was that a MAC had not occurred and the deal was closed at the end of October. The disposal price was adjusted to R5,26 billion.

The local advisers to the deal were: PwC Corporate Finance, Absa CIB, Nedbank CIB, Bowmans, DLA Piper, Webber Wentzel, Rothschild & Co, Java Capital and Deloitte.
Demerger of Bytes Technology Group by Allied Electronics
In April 2020, Altron announced it was looking to demerge Bytes UK and to separately list it on the LSE with a secondary listing on the JSE. The decision was made to unlock value for shareholders as the UK business was identified as being materially undervalued when compared with its UK peer group. A minimum listing value of c.R9.4 billion was put in place by management who was willing to call off the listing if it did not achieve the price target. The company listed in December with a market capitalisation of R16,3 billion.

The local advisers to the transaction were: Rand Merchant Bank, DLA Piper, KPMG, PwC and EY.
The winning deal will be announced at the virtual Ansarada DealMakers Annual Awards on Tuesday 23 February 2021
Headline sponsor to the Annual Awards
Criteria used for the selection of the 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.
  • Potential value creation – to what extent could shareholders and other stakeholders benefit from the transaction over time?
Tuesday 23 February 2021 
Join the South African Mergers and Acquisitions industry as it celebrates the achievements of 2020.

DealMakers
 awards the top advisers by Value and Flow in the following categories:
  • Investment Advisers
  • Sponsors
  • Legal Advisers
  • Transactional Support Services
Awards are made to the top four M&A teams and the top three teams for work carried out in the General Corporate Finance space. Recognition is also given to the top investment advisers and legal advisers (by deal value and flow) for BEE deals - both listed and unlisted.

Other awards on the night include :
Ince Individual DealMaker of the Year
Brunswick Deal of the Year
Catalyst Private Equity Deal of the Year 
Exxaro BEE Deal of the Year
Business Rescue Transaction of the Year
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