PAPE Fund 3 General Partner Proprietary Limited managed by PAPE Fund Managers Proprietary Limited and Kanaka Chemicals Proprietary Limited cancelled the acquisition of a 70% stake in Household and Personal Care Businesses of Libstar Holdings Limited.
June 31, 2022
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PAPE Fund 3 General Partner Proprietary Limited managed by PAPE Fund Managers Proprietary Limited and Kanaka Chemicals Proprietary Limited offers to acquire a 70% stake in Household and Personal Care Businesses of Libstar Holdings Limited (JSE:LBR) for ZAR 174.6 million February 21, 2022. The business comprised of the Contactim and Chet Chemicals divisions. A put and call option, exercisable by Libstar and the Purchasers, respectively, between 31 December 2023 and 30 June 2024, will be entered into in relation to Libstar's remaining 30% interest in the HPC businesses. The price at which the Option may be exercised is based on the same valuation that was used to calculate the purchase consideration for the initial 70% equity interest to be acquired by the Purchasers, less a discount of 20%, being an amount of ZAR 42.72 million. The total purchase consideration (including the price payable in terms of the Option) is therefore ZAR 217.32 million. The Transaction envisages a new company "Newco” being established to acquire the entirety of the HPC businesses as going concerns from Libstar. Implementation of the Transaction is subject to the fulfilment or waiver, as the case may be, by no later than June 30, 2022 of such conditions precedent as are usual for a transaction of this nature. The transaction was sponsored by The Standard Bank of South Africa Limited. Cliffe Dekker Hofmeyr Incorporated acted as Legal Advisor to Libstar.
PAPE Fund 3 General Partner Proprietary Limited managed by PAPE Fund Managers Proprietary Limited and Kanaka Chemicals Proprietary Limited cancelled the acquisition of a 70% stake in Household and Personal Care Businesses of Libstar Holdings Limited (JSE:LBR) June 1, 2022. The parties have agreed to terminate discussions relating to the Proposed Transaction as the definite agreements relating to the transaction were not concluded.
Libstar Holdings Limited specialized in the production and marketing of consumer products. Net sales break down by product family as follows:
- perishable food products (52.1%): dairy products (cheese, butters, yoghurts, creams, etc.), meat products, fresh and chilled products, etc.;
- grocery products (33.4%): seasonings, spices, pasta, canned products, spreads (honey, jams, butters, etc.), cereals, etc.;
- pastry and bakery products (8.6%): tortillas, brioches, rusks, biscuits, breads, etc. The group also sells food ingredients (raising agents, flavours, colours, etc.);
- snacks and confectionery (5.4%): nuts, cereal bars, energy bars, nougats, etc. ;
- household and personal care products (0.5%): household and cleaning products, linen care products, hydrophilic cottons, wipes, toilet soaps, etc.
PAPE Fund 3 General Partner Proprietary Limited managed by PAPE Fund Managers Proprietary Limited and Kanaka Chemicals Proprietary Limited cancelled the acquisition of a 70% stake in Household and Personal Care Businesses of Libstar Holdings Limited.
LIBSTAR HOLDINGS LIMITED 
