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Johannesburg - Investment firm Mvela Group said on Tuesday more that its shareholders had blocked a buyout offer from London-listed Blackstar Group, sinking the $215m deal.
Blackstar, an Africa-focused investment company listed on London’s AIM market for smaller firms, said this month it would buy Mvela in a cash and share deal valuing the company at about R1.8bn.
Buying Mvela would have given Blackstar control of one of South Africa’s best known black-owned investment firms and would have made the company large enough for trade on London’s main board.
Mvela said in a statement that more than 20% of its current shareholders had decided to vote against the offer, enough to sink the buyout under the original terms of the deal.
Blackstar said in a statement that the outcome was “disappointing”, adding it would continue to seek new opportunities.
Shares of both Mvela and Blackstar were untraded.
Blackstar, an Africa-focused investment company listed on London’s AIM market for smaller firms, said this month it would buy Mvela in a cash and share deal valuing the company at about R1.8bn.
Buying Mvela would have given Blackstar control of one of South Africa’s best known black-owned investment firms and would have made the company large enough for trade on London’s main board.
Mvela said in a statement that more than 20% of its current shareholders had decided to vote against the offer, enough to sink the buyout under the original terms of the deal.
Blackstar said in a statement that the outcome was “disappointing”, adding it would continue to seek new opportunities.
Shares of both Mvela and Blackstar were untraded.
