Standard Bank plays key role in R23 billion acquisition to reshape Barloworld’s future

Barloworld is a globally recognised industrial processing, distribution and services company that delivers industrial equipment, services and power systems crucial for mining, construction and power solutions. The company will retain its name and remain headquartered in South Africa.

We acted in our capacity as joint financial advisor, sole mandated lead arranger, underwriter, bookrunner and sole guarantee provider in the transaction. The team provided transaction structuring advisory to NewCo and local sectoral insights and assisted in unlocking the support of key shareholders and other deal-critical aspects of the transaction.

Additionally, we were the sole provider of the Takeover Regulation Panel (TRP) guarantee to the value of R17.1 billion in support of NewCo as part of the regulatory requirements under the proposed transaction. NewCo is a special-purpose vehicle created for the acquisition, owned by a consortium that includes Entsha Proprietary Limited and Gulf Falcon Holding, a subsidiary of Saudi Arabia’s Zahid Group.

Following the transaction, NewCo has committed to implementing a 13.5% broad-based black economic empowerment (BEE) transaction and continues to enhance Barloworld’s BEE credentials.

The transaction is a significant vote of confidence in South Africa and the broader African region, with implications extending across Southern Africa. As Africa’s largest bank, we are committed to driving her economic growth by supporting companies that make a real impact in key sectors. We look forward to continuing to strengthen our relationship with NewCo and Barloworld.