Fin24

Bidvest to buy out appliance unit

2012-11-29 10:57

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.