Royal Bafokeng Finance (RBF), an investment arm of the Royal Bafokeng Nation, is to acquire the entire shareholding in Fraser Alexander, one of South Africa’s oldest services groups to the mining and industrial sectors, with operations in Southern Africa and Chile.
The companies announced on Thursday that agreement has been reached for RBF to purchase 100% of the equity in Fraser Alexander Holdings. The transaction is subject to the Competition Commission’s approval and other conditions precedent.
Fraser Alexander Holdings in turn is the 100% owner of Fraser Alexander Bulk Mech, Fraser Alexander Construction and Fraser Alexander Tailings. In addition, there are wholly owned subsidiary operations in Botswana, Namibia, Swaziland, Zimbabwe and Chile.
The companies said that the transaction had its origins in negotiations last year for RBF to take a black economic empowerment shareholding in Fraser Alexander. This developed into a proposal for RBF to take a 100% stake in Fraser Alexander.
“Royal Bafokeng Finance is acquiring 100% of an established and very successful business which serves the mining industry in particular,” said Niall Carroll, RBF chief executive. “Our roots are in the mining industry, so RBF will be a relevant and involved owner of Fraser Alexander.
“We also hope that through Fraser Alexander’s broad geographic spread, we will be able to assist other communities adjacent to mining operations with their own developmental programmes.”
Fraser Alexander chief executive Lambert van der Nest said the transaction is good news for customers, staff and the entire Fraser Alexander business.
“We started looking for a black empowerment shareholding, and instead Fraser Alexander has become a 100% black-owned business. Not only will this strengthen our existing business with our major customers, but it will also open up new avenues for us, particularly with parastatals.
“Management is very excited about the possibilities that this transaction brings for expanding Fraser Alexander’s operations with existing and new customers in the mining and industrial sectors.
“The negotiations with RBF were conducted in an extremely positive spirit. The chemistry between the two companies is very good, and we share the same vision and objectives for Fraser Alexander. I am extremely optimistic about the future of the company,” Van der Nest said.
The transaction is effective from the date that all conditions are met. The parties involved declined to disclose the acquisition price.
RBF said it has the utmost confidence in the Fraser Alexander management team.
“Our priority is to strengthen and expand this successful business and we intend to be supportive partners for the executive team,” Carroll said. “We will be conveying these messages to existing clients, and to potential new business partners.” — I-Net Bridge