Absa Capital Private Equity affirmed its dominance in the local private equity market with its announcement that it will buy the entire share capital of EnviroServ Holdings Limited, the JSE listed waste management group, in a private equity deal worth over R2bn.
Andre Pieterse, CEO of Absa Capital Private Equity said: “This is the first of its kind in the South African private equity space, where a private equity house acquires a waste management company.”
The development is in line with precedents set in international markets where private equity houses invest on an increasing basis in ‘clean-tech’ assets.
“The announcement reflects the largest public to private transaction in the domestic market this year, and goes to show that there is still a huge amount of confidence in the private equity market,” said Pieterse. “Major deals are starting to happen again.”
Absa Capital Private Equity has made an offer of R16.60 per share to the board of directors of EnviroServ to acquire the entire 113 371 208 issued share capital of the company.
“EnviroServ is also eager to improve the representation of previously disadvantaged individuals,” said Pieterse. “Shortly after the buyout, we expect a BEE entity or a consortium of BEE entities to acquire indirectly 20% of the underlying assets and business of EnviroServ.”
The directors of EnviroServ have declared a cash special dividend of 35 cents per share to be paid on 29 September 2008.
The last day to trade in order to participate in the dividend ’cum dividend’ will be 18 September 2008. The shares will trade ’ex dividend’ from the commencement of business on 19 September 2008.
Absa Capital Private Equity was involved in 5 of the top 10 private equity transactions reported in 2007 according to the KPMG and SAVCA Private Equity Survey.
Note to the editor:
About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.
About Absa Capital Private Equity:
Absa Capital Private Equity (Pty) Limited is a specialist team of dedicated private equity investment professionals from diverse fields who focus on creating post-deal value to maximise investment returns. Absa Capital Private Equity is one of the most prominent private equity fund managers in South Africa.