In a letter to the board of Amalgamated Electronic Corporation or Amecor, Stellar Capital Partners has offered to take the JSE-listed security technology specialist private, bidding R267 million or approximately $20 million to acquire all the company’s outstanding shares. Shareholders are being offered a cash consideration of R3.80 per share or two new Stellar Capital Partner shares for every Amecor share held.
Business Day reports that Stellar Capital Partners has already received several irrevocable undertakings from a number of Amecor shareholders holding about 65% of the company’s issued shares. These include Westbrooke Capital Management, media magnate William Kirsch, Integrated Capital Investments as well as former Director Dereck Alexander and Amecor’s CEO Keith Vieira.
In Amecor’s annual audited financials submitted for the company’s year-end on March 31st, 2016, the firm had generated after-tax profits of R29.7 million from revenues of R131.2 million which were up 17% on the year. Headline earnings per share jumped 300% to 40.4 cents a share.
Rand Merchant Bank and Cliffe Dekker Hofmeyr are providing financial advisory and legal advisory services respectively to Stellar Capital Partners while Merchantec Capital and Werksmans Attorneys are acting as Amecor’s financial and legal advisor on the deal.