JSE-listed renewable energy investor Mahube is set to be taken private after a consortium of black-owned infrastructure investment firms offered to acquire all the company’s shares and delist it from the local bourse.
Mahube announced on Thursday that Kholosani Newco 8, a special purpose vehicle backed by infrastructure investors Kholosani 9, Damazuzu Investments and Matlotleng Capital, has made a firm offer to acquire all the issued shares it does not already own through a scheme of arrangement.
The offer values Mahube at about R555-million based on its 55.15 million shares in issue and proposes a cash payment of R10.06 a share to shareholders.
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The offer price represents a premium of 140.7% to Mahube’s share price before the company first alerted investors in September to a possible buyout and a 67.1% premium to its closing price of R6.02 on November 3.
Renewable energy assets at the centre of deal
Mahube was listed on the JSE in 2015 as a special purpose acquisition company focused on infrastructure and renewable energy investments.
The company owns minority stakes in several renewable energy projects developed under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), including the Dorper Wind Farm, Lesedi Solar Farm, Letsatsi Solar Farm, Jasper Solar Farm and Noblesfontein Wind Farm.
The acquiring consortium is made up of companies already active in the renewable energy and infrastructure sector.
Kholosani 9 is a black-owned infrastructure investment company founded by Indiran Pillay, while Damazuzu Investments is a renewable energy investor that has participated in the REIPPPP since the programme’s first bidding round and has expanded into privately developed utility-scale power projects.
Collectively, Damazuzu and Kholosani 9 own stakes in 20 renewable energy assets across the solar photovoltaic, concentrated solar power and wind sectors, producing about 1 000 gigawatt-hours of electricity annually. The consortium already has direct interests in some of the same projects that Mahube holds stakes in, including Jasper, Lesedi and Letsatsi.
Board says listing no longer delivers expected benefits
Mahube said remaining on the JSE was no longer the most effective way to raise equity capital or support future growth plans. The company said the costs associated with remaining listed now outweigh the benefits, particularly as it seeks to pursue acquisitions and access funding more efficiently.
The board said the transaction would allow shareholders to realise their investments for cash at a significant premium while providing the consortium with an opportunity to expand its exposure to a portfolio of operating renewable energy assets.
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Should the scheme be approved by shareholders and regulators, Mahube’s shares will be delisted from the JSE. The acquiring consortium said it intends to continue operating Mahube’s business and renewable energy portfolio largely unchanged following the transaction.
Shareholder support already secured
The consortium has already secured irrevocable undertakings from shareholders holding 34.9% of Mahube’s issued shares, including the Specialised Listed Infrastructure Equity En Commandite Partnership, to vote in favour of the deal.
The transaction remains subject to shareholder approval, competition clearance, exchange control approvals and other regulatory consents. Mahube expects to distribute a detailed circular to shareholders within 20 business days.
- JSE-listed renewable energy investor Mahube is set to be taken private after a consortium of black-owned infrastructure investment firms offered to acquire all the company’s shares and delist it from the local bourse.
- Mahube announced on Thursday that Kholosani Newco 8, a special purpose vehicle backed by infrastructure investors Kholosani 9, Damazuzu Investments and Matlotleng Capital, has made a firm offer to acquire all the issued shares it does not already own through a scheme of arrangement.
- The offer values Mahube at about R555-million based on its 55.15 million shares in issue and proposes a cash payment of R10.06 a share to shareholders.
- Read more: Coal won’t be abandoned: says Cyril Ramaphosa at launch of Mpumalanga’s R10bn wind farm The offer price represents a premium of 140.7% to Mahube’s share price before the company first alerted investors in September to a possible buyout and a 67.1% premium to its closing price of R6.02 on November 3.
- Renewable energy assets at the centre of deal Mahube was listed on the JSE in 2015 as a special purpose acquisition company focused on infrastructure and renewable energy investments.
