Zahid moves to fully acquire South Africa’s Barloworld: Jeddah-based heavy equipment distributor Zahid Group and Entsha — a South African construction player with ties to Barloworld CEO Dominic Sewela — have placed a bid to acquire the South African construction equipment outfit and Caterpillar distributor in a transaction that would value the firm at ZAR 22.8 bn (USD 1.3 bn), Bloomberg reports citing a joint statement.

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More on the bid: Zahid and Entsha offered to snap up Barloworld shares for ZAR 120 (USD 6.78) apiece, the business information service said. The offer is at a 30% premium to Tuesday’s closing price for Barloworld’s stock. The pair also offered to pay up a ZAR 3.10 dividend that Barloworld had announced previously in order to sweeten the arrangement.

Not enough? Investment manager Silchester International — which represents shareholders controlling a combined 18% stake in Barloworld — said that the group of investors it represents won’t sell for less than ZAR 130 per share. The block’s refusal to go forward can put additional hurdles for the transaction’s success, with Bloomberg citing Silchester as saying that the firm’s privatization “is unlikely to succeed” without their support.

IN CONTEXT- Zahid has been steadily upping its shares in Barloworld over the last four years and currently holds 19% of the company. The Saudi firm’s investment in the South African firm looks to reap gains from an uptick in construction activity in the African market, with the market set to grow 27% by 2029 on the back of government outlays for infrastructure and strong consumer demand, Bloomberg said citing Mordor Intelligence data.

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