OUTCOME OF CASES HEARD BY THE TRIBUNAL ON WEDNESDAY, 15 DECEMBER

 

 

 

Type of matter

Parties involved

Competition Commission’s recommendation to Tribunal

Tribunal decisions

Large merger

Arrowhead (Pty) Ltd And Synergy Income Fund Ltd

Approve with conditions

 

Large merger

 

Kgalagadi Alloys (Pty) Ltd And Kalagadi Manganese (Pty) Ltd

Approve without conditions

 

Large merger

Trialpha Investment Vehicle And Kouga Wind Farm (RF) (Pty) Ltd; Rustmo1 Solar Farm (RF) (Pty) Ltd and Slimsun (RF) (Pty) Ltd

Approve without conditions

 

Large merger

Main Street 1438 (Pty) Ltd And Little Green Beverages (Pty) Ltd

Approve without conditions

 

 

Arrowhead looks to merge with Synergy Income Fund

 

In this merger the primary acquiring firm is Arrowhead Pty Ltd, with the target firm being Synergy Income Fund Ltd. Both are Real Estate Investment Trusts listed on the JSE. On completion of the merger Arrowhead will control Synergy.

Arrowhead owns a diverse portfolio of retail, commercial, industrial and residential properties throughout South Africa.

Synergy is presently controlled by Vukile Property Fund Ltd.

Before implementation of the proposed transaction, and internal restructuring process will take place wherein Vukile and Synergy will exchange certain properties.

The Commission found that the proposed transaction will bring together Vukile and Arrowhead, who will sit on the board of Synergy. The Commission felt that this could result in the exchange of competitive sensitive information.

In order to remedy the Commission’s concerns, the Commission and the merging parties agreed to the conditions restricting the sharing of competitively sensitive information between Vukile and Arrowhead Group.

The Commission therefore recommends the transaction to be approved with conditions.

 

Kgalagadi Alloys to merge with Kalagadi Manganese

 

The Commission has recommended the unconditional approval of Kgalagadi Alloys Pty Ltd and target firm Kalagadi Manganese Property Ltd. Post transaction Kgalagadi Alloys will have control over Kalagadi Manganese.

Acquiring firm Kgalagadi Alloys has one owner who also controls Kalahari Resources Pty Ltd. Kgalagadi Alloys is a shelf company which has no operations or business entity while Kalahari Resources is an investment holding company with shareholding in Kgalagadi Manganese, the primary target firm.

Shareholders in Kalagadi Manganese are ArcelorMittal SA and Kalahari Resources, who jointly control the firm.

Kalagadi Manganese owns new order mining rights in the Northern Cape Province, but is not yet in operation.

 

 TriAlpha Investment Vehicle looks to merge

 

The Commission has recommended to the Competition Tribunal that the large merger whereby TriAlpha Investment Vehicle, intends to acquire a stake in Kouga Wind Farm Pty Limited, Rustmo1, Solar Farm Pty Ltd and Slimsun, be approved without conditions. Post-merger, TriAlpha Investment Vehicle will exercise varying degrees of control over Kouga, Rustmo1 and Slimsun.

TriAlpha Investment Vehicle controls a number of Independent Power Producers including Jasper Power Company, Letsatsi Power Company and Lesedi Power Company which have 20 year Power Purchase Agreements to supply Eskom with electricity. None of these target firms control any other firm. The firms may generate electricity by means of offshore wind technology and solar photovoltaic technology.

The Commission has recommended that the proposed transaction be approved.

 

Main Street 1438 in merger application for Little Green Beverages

 

Main Street 1438 wishes to acquire sole control over Little Green Beverages Pty Ltd, a private company ultimately controlled by Old Mutual. The Commission has recommended the merger be approved without conditions.

Little Green Beverages is involved in the production, packing and distribution of branded and private label beverages in South Africa.

Main Street 1438 is a special purpose vehicle established for the purposes of the proposed transaction and is a wholly owned subsidiary of Ethos Private Equity Fund VI. Ethos Fund VI is a private equity fund that comprises various local and foreign investors. In SA Ethos Fund VI has shareholding in a number of firms.

In terms of the transaction Little Green Beverages will be acquired by a new wholly-owned owned subsidiary of Main Street, namely Main Street 1439 Pty Ltd.

 

Issued by:

Chantelle Benjamin

Communications: Competition Tribunal   

Tel (012)394 1383                                     

Cell: +27 (0) 73 007 5603  

Twitter: @comptrib                                       

E-Mail: chantelleb@comptrib.co.za

 

 

On Behalf Of:

Lerato Motaung                                                   

Registrar: Competition Tribunal                                        

Tel: (012) 394 3355                                             

Cell: +27 (0) 82 556 3221                                              

E-Mail: LeratoM@comptrib.co.za