PIC greenlights Zahid Group's R23bn takeover of Barloworld

Governance issues remain as PIC sets conditions for public interest to be addressed

- EDWARD WEST

THE Public Investment Corporation (PIC) has accepted Saudi Arabia-based Zahid Group’s $1.3 billion (R23bn) bid for Barloworld Group, but has set conditions to address its public interest concerns around the deal.

The Zahid Group has proposed a R120 per share offer, which was a 30% premium on the share price at the time of the offer, but shareholders initially voted against the bid amid claims of governance irregularity, due to the participation of its CEO Dominic Sewela as part of the takeover consortium and claims of lack of transparency in the transaction, and despite the group's assertion that there were now governance breaches.

However, in terms of the standby offer made in February, engagements took place between the PIC, and the PIC undertook to accept the standby offer of the R23bn acquisition of Barloworld, a statement said Wednesday.

The PIC, the State-owned asset manager that manages primarily the Government Employee Pension Fund, owns 41.59 million shares in Barloworld, representing about 21.93% of the shares in issue.

This means that shareholders holding 46.93% of Barloworld’s shares have now undertaken to accept the standby offer.