A consortium of private equity investors, the Actis Consortium, has made a firm offer of 1 625 cents for international financial and risk services group Alexander Forbes.
The offer represents a 16% premium to the closing price of Alexander Forbes’ share on the JSE on June 6 2006 which was the day before Alexander Forbes published the first cautionary in respect of the proposed offer.
At 11.40am on Moday, Alexander Forbes’ share price was 1 540 cents — 1,65% or 25 cents higher than its close on Friday.
Led by Actis Africa Fund 2 LP, the Actis Consortium — acting through Cleansheet Investments or Bidco — comprises two other private equity firms, Ethos Private Equity Fund V and Harbourvest Partners LLC and two Canadian fund managers, Ontario Teachers’ Pension Plan Board and Caisse de depot et placement du Quebec as well as black economic empowerment partners, namely Shanduka Group, a community trust and an employee share trust.
Once the deal is completed, Alexander Forbes will be a wholly-owned subsidiary of Bidco and its listing on the JSE will be terminated.
A preliminary valuation by KPMG Services has concluded that the offer is fair and reasonable.
VenFin Risk Services, which owns 25,1% of Alexander Forbes, has given the Actis Consortium an undertaking to vote in favour of the offer. – I-Net Bridge