UCP shareholders approve takeover by Afrimat

9th October 2020 By: Marleny Arnoldi - Deputy Editor Online

JSE-listed Afrimat has announced that its offer to acquire all of the ordinary shares in Unicorn Capital Partners (UCP) not already held by Afrimat has gotten the green light from UCP’s shareholders.

The industrial minerals and construction materials company in July announced its intention to acquire all the outstanding shares of UCP, which is a mobile crane hire, exploration drilling services, earthmoving blasting, opencast and underground mining services provider.

The rationale for the transaction is that UCP’s operations would provide Afrimat with access to additional services and commodities that expand its current product offering in the bulk commodities segment.

Afrimat will acquire the shares by way of a scheme of arrangements and, should it become operative, UCP shareholders will receive one Afrimat ordinary share for every 280 UCP ordinary shares held.

UCP’s shareholders will benefit from exposure to a business with exciting growth prospects and have a shareholding in a company with better liquidity, says Afrimat. 

The transaction still needs to be approved by the Mpumalanga Economic Growth Agency, the Industrial Development Corporation and financial services provider Absa.