Johannesburg - The Bidvest Group [JSE:BVT] has offered to buy the
remaining 72% stake in Amalgamated Appliance Holdings [JSE:AMA] it does not already own,
in a $61m cash deal.
Bidvest, a sprawling conglomerate with interests in
everything from catering to car sales, has offered R3.50 a share for the
distributor and retailer of household appliances, the two companies said in a
statement on Wednesday.
The offer represents a 10% premium to Amalgamated
Appliance's closing price on Tuesday.
The deal would be worth R537.9m, according to Reuters
calculations.
The acquisition will allow Bidvest, which currently holds
27.6% of Amalgamated Appliances, to fully integrate the company into its stable
of subsidiaries.
Amalgamated Appliances will also gain better access to
Bidvest's customer base, the companies said.
Shares of Amalgamated Appliances surged 6.7% to R3.4 on the
news, while shares of Bidvest fell 1.6% to R205.80.
Investec advised Bidvest on the deal while Bridge Capital
advised Amalgamated Appliances.
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