Shares in Avusa spiked almost 13 percent on Tuesday following an announcement by Mvelaphanda Group that it has made a cash and share offer to acquire all the shares in issue in the media and entertainment company that it does not already own in a deal worth about R3 billion.
The cash offer of R24 per Avusa share is being made through Mvela’s wholly owned subsidiary‚ Richtrau No. 229 (Proprietary) Limited. Mvela currently owns around 21 percent of Avusa.
Blackstar Group SE‚ a listed investment company that controls 28 percent of Mvela Group‚ is the arranger and promoter of the transaction and will assist management in driving the turnaround strategy in Avusa.
In terms of the deal‚ Avusa will be delisted from the JSE and Richtrau will be listed on the bourse and unbundled to Mvela’s shareholders‚ pursuant to the transaction.
News of the offer saw Avusa’s share price up 12.93 percent or 265 cents at R23.15 per share – just 85 cents shy of the cash offer - at 13:43 local time.
"It isn't right that the Sanral is not revealing the costs involved in the Winelands toll project..."
Transnet and China Development Bank have signed a deal on financing upgrades at rail and port networks.
The BRICS on Tuesday reached a deal to establish a development bank to rival Western-backed institutions.
