By Lynn Bolin

A consortium of the management of listed wholesaler Metro Cash and Carry ltd (Metcash, MTC), the Black Empowerment Consortium and associates, led by CEO Carlos dos Santos and company director Hilton Mer, has agreed to acquire the company, excluding its 61% stake in Metcash Australia and an A$119-million syndicated loan, for a total cash consideration of R1.3-billion.

Announcing the proposed buyout, Metcash said that before costs and taxes, the distribution would amount to approximately 71 cents per share.

The transaction is subject to several conditions precedent, including the approval of a majority of Metcash shareholders, and the requisite regulatory approvals.

Metcash's two major shareholders, RMB Asset Management and Stanlib Asset Management, had already irrevocably undertaken to vote in favour of the acquisition, the company added, as the management buyout had been undertaken at their initiative.

Metcash's remaining asset would be its 61% interest in Metcash Australia, whose shares are listed on the Australian Stock Exchange, the group confirmed. Metcash would also remain listed on the JSE Securities Exchange SA.

Metcash's share price shot up over 10% on the news, last quoted on the JSE at R2.70, 30 cents higher than Tuesday's close of R2.40, and 25 cents above the R2.45 level where it was trading just prior to the announcement.

I-Net Bridge 06 May 2004