Durability + Design
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

D+D News

Main News Page


Freeworld Coatings Buyout Collapses

Friday, June 25, 2010

Comment | More

Shareholders of Freeworld Coatings Ltd. have killed a planned takeover of the company by the investment group Bidco.

Freeworld, based in Johannesburg, South Africa, issued a statement after the shareholder vote June 14, reporting that the deal “has not been approved by the requisite majority of votes.”

Without shareholder approval, “the scheme will not be implemented,” the statement said. “As a consequence, the Bidco offer has lapsed.”

Freeworld Coatings, formerly known as Barloworld Coatings, is an international marketer of decorative, automotive and industrial coatings. With factories throughout sub-Saharan Africa, the 118-year-old company serves that region as well as Australia and China and exports products worldwide.

The shareholders’ “no” vote came just three days after Freeworld  announced the possibility of a competing bid for the company by a still-unnamed party.

“The directors intend to investigate the ability of the competing bidder to make a competing offer and the details relating to such an offer,” the company said. “Shareholders are accordingly advised to exercise caution when dealing in their Freeworld shares until a further announcement is made in this regard.”   

Bidco, a private equity consortium led by private equity funds under the management of subsidiaries of Brait Societe Anonyme, announced March 31 that it planned to acquire all Freeworld shares not yet owned by it or its holding company, VVT Infrastructure Investments (Proprietary) Limited. Those parties own 18.86% of Freeworld’s shares.

The deal received unconditional approval last month from South Africa’s Competition Commission, according to a joint statement by the parties. The deal was expected to close in July.

Bidco’s terms of the deal were apparently non-negotiable, however. On June 3, Freeworld told shareholders that Bidco had notified the company in writing that it was holding fast to both its bid (R10.45 or $1.38 U.S. share) and the timing of the deal.

Bidco released no separate statements about the purchase. After the vote, however, Brait CEO Anthony Ball told Moneyweb.com: “We're disappointed, but that is shareholder democracy.”

André Lamprecht, CEO of Freeworld, did not say whether the possibility of a competing offer had driven the shareholders’ rejection of Bidco, the web site reported.

“Clearly, the company is of interest,” Lamprecht told Moneyweb.com. “We are not yet in possession of a firm offer but were required to notify shareholders that somebody might be considering something. I can't say if shareholders were waiting for something better. Only they can answer that.”

   

Tagged categories: Acquisitions; Freeworld Coatings; Mergers

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Keim Mineral Coatings
 
Mineral Silicate Paints + Stains Fuse to Concrete
 
• Forms permanent chemical bonds
• Becomes part of the concrete
• Will never peel
• Looks completely natural
 

 
Shield Industries, Inc
 
FireGuard® E-84 Intumescent Coating - Shield Industries, Inc
 
Trust the certified protection of the industry’s most innovative intumescent coating FireGuard® E-84 to provide you with the 1 and 2 hour fire ratings you need.
 

 
Garland Company
 
Architectural Wall Coating Damproofs and Beautifies
 
Tuff-Coat™ multi-functional coating bridges hairline cracks, hides stains and discoloration, and reduces wall temperature, increasing the wall's life cycle.
 

 
EMME Controls
 
EMME (Energy Management Made Easy)
 
• Achieve a zone in every room for 1/2 the cost
• Save up to 40% in energy consumption
• Works in any size building
• Can be installed in as little as a few days without remodeling
• Comfort results guaranteed in writing
 

 
Atlas Material Testing Technology
 
Helping You Put Your Products To The Test
 
  • Outdoor Accelerated Weathering
  • Laboratory Testing Services
  • Accelerated Weathering Instruments

  • www.atlas-mts.com
    atlas.info@ametek.com
 

 
Novatek Corporation
 
Novatek Portable Air Filtration Systems
 
Air Scrubbers/Negative Air machines for restoration, abatement, dust & odor control, hazardous contaminant removal from job sites to clean rooms and hospitals. Portable, affordable!
 

 
Dow Coating Materials
 
Need smooth, durable and appealing coatings?
 
Dow Corning® 52 Additive improves abrasion resistance & slip in:
• Waterborne paints, inks &
  coatings
• Wood coatings
• OPVs
• Exterior & interior paints
Samples available.
 

 
PPG Paints
 
PPG PAINTS™ SPEEDHIDE® INTERIOR LATEX
 
This high-hiding, low-VOC, low-odor paint enables a space to be painted while occupied and delivers the durable product performance professionals require.
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@durabilityanddesign.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 

© Copyright 2012-2018, Technology Publishing Co., All rights reserved