While JSE-listed investment holding company Labat Africa has suspended talks to buy out raw material bulk carrier Transmac, its plans to acquire two dry bulk carriers has moved ahead, with due diligence of both operations expected to be concluded by the end of March.
Following the expiration of the three term sheets entered into last year, Labat this week entered into new term sheets with only dry bulk carriers Senna Motors (Elf Trans) and Marble Vervoer.
Labat acquired Benoni-based Elf Trans for R45-million, to be settled through a combination of cash and shares. Labat would also be granted first option to acquire the property where Elf Trans was based, which was owned by a related party of Elf Trans.
Marble Hall-based Marble Vervoer was acquired for an undisclosed amount, also to be settled through a combination of cash and shares.
“The combined business of Elf Trans and Marble Vervoer will give Labat an established footprint in the dry bulk business in South Africa,” the company said in a statement.
Elf Trans would become a subsidiary of Labat and Marble Vervoer a division of Elf Trans.
The deal remained subject to conditions precedent, including the due diligence completion, the completion of comprehensive agreements giving effect to the acquisitions by no later than April 11 and final necessary approvals, besides others.
Meanwhile, Labat entered into further negotiations with three other undisclosed groups to further diversify and expand its footprint in the transport and logistics sector.
The group had suspended talks for the R50-million buy-out of Nigel-based Transmac, comprising Transmac Trucking, Transmac Logistics and Transmac Group, with no indications of whether negotiations would be picked up at a later stage or whether the deal was completely abandoned.
Labat, which aimed to be a leading transport and logistics company, recently concluded the R560-million acquisition of Reinhardt Transport Group.