Investment groups Rebserve Holdings and Mvelaphanda Holdings are to merge. The two groups said on Thursday that they have signed a merger agreement that will see control of Rebserve pass to Mvela through a reverse takeover.
The companies said the merger will create a “truly empowered, broad-based, black-controlled, -owned and -managed, diversified South African group”.
Rebserve’s name will be changed to Mvelaphanda Group (New Mvela). The merger will be achieved by Rebserve acquiring — with effect from July 1 2004 — all of the businesses and assets of Mvela Holdings, excluding the upstream oil, energy and oil trading businesses, and other minor assets owned by Mvela Holdings, for a total purchase price of R1,546-billion.
Rebserve will issue/transfer 213 775 000 Rebserve shares to Mvela Holdings and assume R50-million of Mvela Holdings’ debt in discharge of the purchase price.
“Tokyo Sexwale, Mikki Xayiya, Mark Willcox and Stephen Levenberg have undertaken, free of any monetary consideration, that all of their future business undertakings anywhere in the world (other than in the upstream oil, energy and oil trading sectors) will, for a minimum period of three years from April 1 2004, on the basis of a right of first refusal in favour of New Mvela, be conducted solely and exclusively through New Mvela.
“As a result, New Mvela is expected to benefit considerably from strong deal flow and significant BEE [black economic empowerment] opportunities,” the companies said. — I-Net Bridge