The ANSARADA DealMakers Annual Awards are just a few weeks away. The following are those transactions shortlisted for the Business Rescue Transaction of the Year 2022 and highlight the process as a tool to preserve value. The DealMakers Independent Panel have selected these transactions from the nominations submitted by the M&A industry advisers. They are in no particular order:
Ster-Kinekor
SA’s largest cinema chain with 65% of market share entered business rescue in January 2021 citing financial distress due to COVID-19 related restrictions and increased competition from streaming platforms. The consortium comprising UK-based asset manager Blantyre Capital and local private debt manager, Greenpoint Capital emerged as the successful bidder in the R250 million refinancing, restructure and sale of Ster-Kinekor’s assets. In November 2022 the company exited business rescue having continued operating throughout the process and without the loss of +-800 direct jobs.
The local advisers were: EY, Webber Wentzel, Baker McKenzie and Mike Pienaar Consulting.
Andalusite Resources
The country’s remaining independent andalusite producer exited the business rescue process in May 2022 having been placed under supervision in June 2019. A world class strategic asset, Andalusite Resources is one of three main suppliers of andalusite globally with a 23% market share. Eight expressions of interest were received with ARM (a subsidiary of Nikkel Trading 392) winning the bidding process which began in July 2019. The business and all 181 employees were successfully transferred to ARM, a South African entity, under the same terms and conditions.
The local advisers were: GCW Administrators and Werksmans.
Consolidated Infrastructure Group (CIG) and Consolidated Power Projects (CONCO)
The GIC and CONCO business operate in the infrastructure and construction sectors focused primarily on energy, electrification, building and oil and gas and as a result the business rescue of these groups were both large and complex due to multi-disciplinary operations involved. GIC was listed on the JSE when it entered business rescue. The successful operational restructuring implemented disposed of operationally stable, efficient and profitable going concerns resulting in the retention of jobs within those businesses and maximisation of net proceeds for all affected parties.
The local advisers were: Birkett Stewart McHendrie, Metis and Werksmans.
The winner will be announced at the ANSARADA DealMakers Annual Awards on 21 February, 2023 at the Sandton Convention Centre.
