Shares in listed South African investment holding group Rebserve soared on the JSE Securities Exchange South Africa (JSE) on Monday afternoon following news that the company has signed a memorandum of understanding with black empowerment group Mvela Holdings, led by Tokyo Sexwale, that will see a reverse takeover of Rebserve by Mvela to create a black-controlled, diversified industrial group with a post-merger value of more than R3-billion.
At 2.04pm, Rebserve shares were up 4,07% or 35 cents at R8,95 after trading as high as R9,05 a few minutes earlier. They had been trading at R8,60 just before the news was released on the Stock Exchange News Service.
In terms of the deal, Rebserve will be used as the vehicle for the merger and will change its name to Mvelaphanda Group (New Mvela).
Rebserve has a range of interests including facilities management, technical, professional and support services.
“As a result of the merger, New Mvela is expected to benefit considerably from strong deal flow and significant BEE [black economic empowerment] opportunities,” the two companies said.
“Mining and resource transactions will continue to be housed in Mvelaphanda Resources Ltd, in which New Mvela will hold a material interest.” — I-Net Bridge