Tribunal approves transaction whereby Corvest 12 will acquire
control over Alternative Power
The Tribunal has approved, without conditions, the transaction whereby Corvest 12 (Pty) Ltd (“Corvest 12”) will acquire certain additional minority protections through their shareholding in Alternative Power (Pty) Ltd (“Alternative Power”). Upon implementation of the proposed transaction, Corvest 12 will be able to exercise control over Alternative Power, as envisaged by section 12(2)(g) of the Competition Act 89 of 1998, as amended.
Corvest 12 currently holds shares in Alternative Power and, in terms of the proposed transaction, will exercise its rights under the Alternative Power shareholders agreement to acquire control of Alternative Power.
Corvest 12 is an on-balance sheet provider of private equity for mid-sized management buy-outs, leveraged buyouts, development capital and funded black economic empowerment solutions. It ultimately forms part of the FirstRand Group, which through its various financial services franchises, provides a universal set of transactional, lending, investment and insurance products and services.
Alternative Power manufactures and sells energy drinks, energy bars and energy rolls under the brand “Switch”, to wholesalers, distributors and retailers. However, it does not sell any of its products directly to end customers. Alternative Power trades throughout South Africa and also exports its products to certain neighbouring countries from time to time.
The Tribunal has found that the proposed transaction is unlikely to substantially lessen or prevent competition in any market in South Africa. In addition, the proposed transaction does not raise any public interest concerns.