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
The acquisition will allow Bidvest, which currently holds
27.6% of Amalgamated Appliances, to fully integrate the company into its stable
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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