M and A Navigator: Deal pipeline -10 May.
MANews-(C)2009-2017
The following is a list of deals covered in detail by M and A Navigator this week:
-MECHAN CONTROLS TO SELL BUSINESS TO TECHNICAL DIRECTOR FARRAH
UK-based safety switch manufacturer Mechan Controls plc's board has agreed, subject to shareholder approval, to dispose of the business and assets of Mechan Controls plc (other than the shares in its subsidiary Nirvana Engineering Ltd.) to Mechan Controls Ltd., a new company ultimately controlled by Mabruk Farrah, the current technical director of the company, Mechan said.
Subject to shareholder approval, the company will sell the business and assets of the company to the buyer for the "purchase price" being a minimum sum of GBP 1.64m up to a maximum of GBP 2m (USD 2.59m).
Status: Agreed
-THE M/A DUE DILIGENCE PROCESS IS BROKEN, ACCORDING TO NEW AXIOM, RACONTEUR REPORT
Seventy to ninety percent of merger and acquisition activity fails to achieve its goals. These failings are primarily due to the de-prioritization of deal integration and due diligence analysis, according to a new report from US-based legal, contracts, and compliance solutions provider Axiom and content firm Raconteur.
In-house lawyers understand these pre- and post-deal pitfalls, and are eager to affect change, but do not feel empowered to do so. Instead, they feel confined to due diligence box-ticking exercises, which add limited value to deal outcomes. Legal departments cite lack of integration as the number one reason deals fail (according to 58% of respondents), while also acknowledging that they are providing inadequate value to downstream teams focusing on integration synergies.
Status: Closed
-STRATEGIC MINERALS TO BUY REMAINING STAKE IN CENTRAL AUSTRALIA RARE EARTHS FROM JV PARTNERS
UK-based mineral production and development company Strategic Minerals plc's (AIM: SML) joint venture partner, Rarus Ltd., has agreed to sell its remaining shares in Australian mining firm Central Australia Rare Earths Pty Ltd to SML for GBP 522,500 (USD 677,525), the company said.
This price is to be provided by Rarus subscribing for 19m new shares in Strategic Minerals plc issued at GBP 0.0275 per share.
Status: Agreed
-DIVERSIFIED GAS AND OIL BUYS APPALACHIAN BASIN ASSETS FROM TITAN ENERGY
US based gas and oil producer Diversified Gas and Oil plc (AIM: DGOC) has entered into a conditional sale and purchase agreement to acquire certain gas and oil assets of Titan Energy for USD 84.2m, LLC in the Appalachian Basin, the company said.
These holdings are principally the states of Ohio, Pennsylvania, southern New York and northeast Tennessee. This acquisition that will increase DGO's gross oil and gas production to approximately 18,300 boepd (11,000 boepd). Cash consideration of USD 84.2m to be funded through a new term debt facility provided by Angelo, Gordon and Co and a proposed placing of new ordinary shares raising a minimum of USD 20m.
Status: Agreed
-OPERA INVESTMENTS TO ACQUIRE TANZANIA'S KIBO GOLD FOR GBP 3.66M
UK-based investment company Opera Investments plc (LSE: OPRA) has conditionally agreed to acquire Kibo Gold Ltd, through which the Imweru and Lubando gold projects in Tanzania are held, from Tanzania focused mineral exploration and development firm Kibo Mining plc (AIM: KIBO) for a total consideration of GBP 3.66m (USD 4.75m), the company said.
Opera was listed in April 2015 in order to undertake an acquisition of a target company or business in the natural resources sector within its defined investment strategy. The directors of Opera believe that the Kibo deal represents a significant opportunity to acquire the Imweru and Lubando gold projects and consolidate with Kibo's existing management team and expertise within Tanzania.
Status: Agreed
-CIVITAS SOCIAL HOUSING BUYS TWO UK PORTFOLIOS FOR GBP 19.3M
UK-based real estate investment trust Civitas Social Housing plc (LSE: CSH) has completed the purchase of two portfolios of regulated social housing for a total consideration of GBP 19.3m (USD 25.03m), the company said.
The deal comprises the freehold interest in 19 supported living properties, with 98 tenancies. These portfolios are immediately income generating with initial net yields in line with the company's expectations and both were sourced off-market by Civitas Housing Advisors Ltd., the company's investment manager.
Status: Closed
-TBC BANK CLOSES ACQUISITION OF REMAINING STAKE IN GEORGIAN BANKING SUBSIDIARY
Georgia-based TBC Bank Group plc (LSE: TBGC) has entered closed the operational and legal merger with its Georgian banking subsidiary, JSC Bank Republic, the company said. Under the deal, JSC TBC Bank that, together with its parent, TBC Bank Group, acquired the remaining 6.36% stake in JSC Bank Republic.
The consideration to be paid is determined on the same basis as the acquisition of the 93.64% stake from SociA(c)tA(c) GA(c)nA(c)rale. Together with the previously announced acquisition of the 93.64% stake, these acquisitions will, once completed, result in the acquisition of 100% of the equity of Bank Republic.
Status: Closed
-UK CMA MAY PROBE ZPG'S CLOSED ACQUISITION OF ONLINE ESTATE AND LETTING AGENCY SOFTWARE FIRM EXPERT AGENT
The UK Competition and Markets Authority is considering whether UK-based home-related digital platforms owner ZPG Plc's (LSE: ZPG) closed acquisition of UK-based online estate and letting agency software firm Websky Ltd. (Expert Agent) may be expected to result, in a substantial lessening of...
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