The Competition Commission (CompCom) has recommended that the Competition Tribunal approves, with conditions, the proposed transaction whereby Novus intends to acquire control over Mustek.
In November, JSE-listed print, publishing and packaging manufacturing business Novus made an offer to buy JSE-listed ICT distributor Mustek.
It told Mustek shareholders that it had acquired the beneficial ownership of ordinary issued shares in Mustek, which resulted in Novus beneficially holding 35% or more of all the issued Mustek shares.
Accordingly, Novus proceeded to make a mandatory offer, as required in terms of section 123 of the Companies Act, to acquire all of the Mustek shares not already beneficially held by Novus, or any of its related and concert parties.
Under the deal, Novus offered a cash consideration of R13 for each Mustek share, a cash amount of R7 plus one ordinary share in Novus for each Mustek share and two Novus shares for each Mustek share tendered by a mandatory offer participant.
In a statement, the CompCom says Novus is controlled by A2 Investments Partners. It notes that Novus operates a commercial printing, manufacturing and packaging business, and also provides a range of training services and holds investment interests in various industries, such as sports betting, construction, agricultural and technology.
The competition watchdog adds that Mustek is not controlled by any single firm and it controls various subsidiaries.
Mustek assembles and distributes personal computers and complementary ICT products, services and software in South Africa.
The firm’s distribution business encompasses the distribution of laptop brands, gaming equipment, printers, desktop and similar hardware.
The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market.
According to the watchdog, to address employment-related public interest concerns, the merger parties have agreed to a two-year moratorium on retrenchments following the merger implementation date, and to preferential employment conditions for employees retrenched by the Mustek Group pre-merger.
“The proposed transaction does not raise further significant public interest concerns,” it concludes.
Share