Industrial minerals and construction materials company Afrimat on July 22 announced its firm intention to acquire Unicorn Capital Partners (UCP).
UCP’s business comprises mobile crane hire, exploration drilling services, drilling and blasting, opencast and underground mining and earthmoving operations.
Afrimat is primarily engaged in openpit mining, and processing and the supply of a broad range of industrial minerals and materials to an assortment of industries across Southern Africa.
In addition, Afrimat supplies bulk commodities to local and international markets.
UCP’s operations fit the strategy of Afrimat and will provide it with access to additional services and commodities that expand its current product offering in the bulk commodities segment, Afrimat said in a statement.
"The UCP board of directors has received a firm intention from Afrimat to make an offer to acquire all the ordinary shares in UCP not already held by Afrimat (or by its subsidiaries) or by subsidiaries of UCP, by way of a scheme of arrangement. Should the scheme become operative, UCP shareholders will receive 1 Afrimat ordinary share for every 280 UCP ordinary shares held.
"The scheme will provide UCP shareholders with an opportunity to convert their illiquid investment in UCP to a more liquid instrument in Afrimat and to gain exposure to a business with exciting growth prospects. Afrimat believes the transaction will provide UCP shareholders with an opportunity to realise significant and attractive value for their UCP shares."