CONSTRUCTION
Furniture and household goods manufacturer and retailer Steinhoff International has made a R1.3-billion offer to acquire building materials distributor Iliad Africa. The acquisition would be carried out through a scheme of arrangement, with the offer price at R10 a share, plus a 24c special dividend to be paid by Iliad before the date on which the scheme would become effective. This represented a 24.6% premium to the 30-day volume-weighted average price calculated at the close of trade on July 15, and a 10.7% premium to the closing price of Iliad ordinary shares on July 14. “In recent strategic deliberations, the Iliad executive committee identified a number of potential synergies between Iliad and Steinbuild, a wholly owned subsidiary of Steinhoff. The offer is, therefore, not only opportune, but presents various benefits for Iliad to capitalise on opportunities to increase scale and critical mass.
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