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Barloworld Buyout Offer Extended Amid Shareholder Delays

Strategic Insights

— 1 min read

Barloworld's independent board has agreed to a limited extension of the acceptance date deadline to June 30, 2025, for the R23 billion buyout offer made by Saudi Arabian firm Zahid Group in concert with Barloworld CEO Dominic Sewela. The initial offer was first made in February 2024, but shareholders raised concerns about transparency, conflicts of interest, and the offer price of R120 per share. Despite the Public Investment Corporation (PIC), the company's biggest shareholder, accepting the offer with additional conditions in April, the bidders still hold only 46.93% of the shares, short of the required 50% for a successful takeover.

Key Takeaways:

  • The buyout offer, worth R23 billion, was initially made in February 2024 by Zahid Group in concert with Barloworld CEO Dominic Sewela.
  • The offer was rejected due to concerns over transparency, conflicts of interest, and the offer price of R120 per share.
  • The Public Investment Corporation (PIC), Barloworld's biggest shareholder with 21.93%, accepted the offer with additional conditions in April 2024.
  • The bidders still hold only 46.93% of the shares, requiring at least 50% of remaining shareholders to accept the offer for it to be successful.
  • The independent board has agreed to extend the acceptance date deadline to June 30, 2025, to allow additional time for shareholders to accept the offer.
  • Barloworld's share price has risen from R88.67 to R107.58 over the past year, closing 0.07% higher on Friday.

Statistics:

  • R23 billion: the value of the buyout offer made by Zahid Group in concert with Barloworld CEO Dominic Sewela.
  • 46.93%: the percentage of shareholders who have accepted the offer, still short of the required 50%.
  • 21.93%: the percentage of shares held by the Public Investment Corporation (PIC), Barloworld's biggest shareholder.
  • R120: the offer price per share in the buyout offer.
  • R107.58: the share price of Barloworld on Friday, a 0.07% increase from the previous day.
  • R88.67: the share price of Barloworld a year ago.

Sources:

  • Barloworld's website - no date
  • Zahid Group website - no date
  • Public Investment Corporation (PIC) website - no date

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