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Almost two months after first announcing its intention to acquire the Reinhardt Transport Group (RTG), black-owned and managed investment holding company Labat says it has concluded an agreement that will see it securing full interest in the bulk logistics group for R645-million.
The deal would be the first acquisition in line with Labat’s strategy to become a major transport and logistics company in South Africa and sub-Saharan Africa, providing transport infrastructure-related services.
Labat outlined in a Friday statement that R325-million would be financied through debt and the balance through a private placement of 240-million new shares at 150c apiece, which would primarily be offered to black economic-empowerment (BEE) investors.
“The rationale for this is [our] intention to retain Labat’s Level 1 BEE rating after the transaction,” it stated, adding that the effective date of the transaction was August 1.
The deal remained subject to regulatory approvals, including JSE and Competition Commission approvals, as well as approval by the directors and shareholders of Labat and RTG.