Tie-ups, acquisitions, IPOs and Delistings tv_user December 26, 2022
Tie-ups, acquisitions, IPOs and Delistings

Tie-ups, acquisitions, IPOs and Delistings

When we published our note a month ago on investors’ appetite for M&A (see our note dated November 7th) we did not expect most of the deals to happen by year end. Here are some of the main stories on fresh tie-ups, acquisitions, IPOs and delistings collected from last week’s press

Cerealis Mandate offer after Majority Acquisition:

Power Brands holds a controlling stake in Tunisia’s leading salt and sweet snacks maker Cerealis (74.9% of the company’s shares) listed in the Tunisian Stock Exchange. Power brands is controlled by 3 partners: the founders Gahbich family office (34.29%) Private Equity firm Equity Capital (12.84%) and PE firm Cardinals Brands Limited (52.87%). Following a change in the shareholding structure of Power Bands whereby Cardinal Brands became the majority owner, the Tunisian Capital Market Authority (Conseil du Marché Financier CMF) has asked Cardinals Brands to initiate a mandate offer on the free float in the Tunisian Stock Exchange at 13.30Tnd per share.  The mandate offer which started on Novembre 17th  has closed on December 7th with success. The owner now controls more than 95% of the company’s share capital which means that delesting the company’s shares from the Tunisian Stock Exchange is possible. We expect Cerealis shares to be soon delisted which makes it the second company to delist its shares (after the pharma company ADWYA) in 2022. Cerealis is among the top performers this year with share price skyrocketing more than 50% year to date.

Delisting ADWYA from the Tunisian Stock Exchange

ADWYA one of the leading pharmaceutical companies specializing in generic drugs in Tunisia has recently been the target of a takeover deal initiated by Kilani family office on the company’s shares owned by the founders (Materi Family) and the Tunisian Sovereign Fund (ALKarama). On November 25th the Tunisian capital market authority suspended trading on the ADYWA’s shares following a request for delisting initiated by the owners “Labo Teriak SA”, “Kilani Holding Pharmaceuticals” Lassaad and Rafik Kilany four of them holding 99.19% of the company’s shares. ADWYA was the first company to be delisted in 2022, the share price has jumped almost 30% in the market after the takeover deal was confirmed and the stock is among the top performers this year

SOTIPAPIER’s tie-up with Sango capital delayed

Sotipapier’s 52% block expected to trade between the Tunisian PE firm Swicorp (seller) and the South African Sango (buyer) in December 2022 was delayed to Q1/2023. Sotipapier is Tunisia’s leading cardboard and cement sacks producer founded originally by Mr Abdelkader Hamrouni in 1981. Its current reference shareholders Recall Holding, Value Consulting, HAN TN and Sunsaley have signed a tie-up agreement with the south African investor Sango Capital whereby the latter would buy a majority block (52% in Sotipapier) at 6.34Tnd per share which means a 92m Tnd block (approx. 30m US Dollars). The Tunisian Capital Market Authority has asked the buyer to launch a mandate offer on the free float once the majority block transaction is completed.  The transaction will go through on condition that the necessary approvals and administration process is completed.

Other deals coming to the market

We expect other deals to happen in Q1 of 2023. The sale by the Tunisian sovereign fund ALKARAMA of a majority block in the leading cement company in Tunisia ‘Carthage Cement” as part of the privatization program. The IPO of the life insurance subsidiary of Maghrebia Group by rights issue and the listing of a major food company by secondary sale. For more information, please write to our research team at recherche@tunisievaleurs.com