Consol Ltd., Africa“s largest glass maker, says it accepted a ZAR 6.16 billion (USD 1 billion) takeover offer from financial services company Brait SA. The bid is higher than one received earlier fro…
Consol Ltd., Africa“s largest glass maker, says it accepted a ZAR 6.16 billion (USD 1 billion) takeover offer from financial services company Brait SA. The bid is higher than one received earlier from private-equity firm Ethos Ltd. and Ontario Teachers Pension Plan. The Brait offer values Consol at ZAR 19.50 a share, the Johannesburg-based company said in a statement, ZAR 82 million rand more than offered by Ethos and Teachers on 4 December 2006. South Africa“s glass making industry has benefited from strong consumer demand that has been prompted by the increased wealth of the country“s black majority. Nampak Ltd., Africa“s largest packaging company, agreed in 2005 to sell half of its glass unit to Germany“s Wiegand-Glas for EUR 18 million (USD 27.3 million). “I“m quite surprised,” said Graeme Korner, a fund manager at Standard Bank Ltd.“s private banking unit in Johannesburg. “There are a good number of viable deals out there and the question to ask is “why Consol?“ ” The Brait bid “contains more attractive terms,” than that from Ethos, according to Consol. The company“s board said it will recommend that shareholders accept the deal after adviser Nedbank Group Ltd. found it to be “fair and reasonable.” Investors including Investec Asset Management with a 17.4% stake in Consol and Old Mutual Asset Managers with 4.5% conditionally agreed to back the offer. The bid is also supported by Public Investment Corp., which owns 2.2% outright and 11.6% through third-party fund managers.