subscribe: Daily Newsletter

 

Sahara/Simeka BSG merger called off

0 comments

The Sahara/Simeka BSG merger is off. An announcement on the JSE's SENS service this afternoon states that the two companies have decided to call off what would have been a R867-million deal. 

The statement, titled "Withdrawal of cautionary announcement and further cautionary announcement" says the parties have, mutually, decided to cancel the     
agreement in respect of the proposed merger.
"Accordingly, the proposed merger will not be proceeding. However, the parties have committed to identifying opportunities to work together in the future, with a view to taking advantage of the synergies between their businesses."
Earlier this week it was announced that Simeka BSG and Sahara would merge to form a R1,5-billion IT giant.
Simeka was to buy Sahara's operational businesses in exchange for 510-million shares.
Sahara would have become effective majority shareholders of Simeka BSG.
Simeka BSG also refers to a cautionary announcement from 20 August 2007, relating to its acquisition of Premium Ideas, and advises shareholders to continue exercising caution in respect of this announcement.