Shanduka-Pembani deal sows confusion

2014-11-30 15:00

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

The R11?billion merger announced this week between Deputy President Cyril Ramaphosa’s Shanduka and Pembani Group has complicated Ramaphosa’s exit strategy from the group.

The deal that would separate Ramaphosa from Shanduka’s myriad “regulated” businesses and resolve his conflicts of interest saw the small Mabindu Trust grow from a 1.45% shareholder to holding 49.5% and dominating Shanduka.

The trust is to buy out Ramaphosa and other former managers with vendor finance from the Shanduka group itself, according to Shanduka CEO Phuti Mahanyele.

According to Donne Nicol, a Mabindu trustee, the executive director of the Shanduka Foundation and a long-time associate of Ramaphosa, Shanduka shareholders signed off on this deal on Tuesday.

After Mabindu became the major shareholder in Shanduka, Nicol and her fellow trustees would appoint directors for the group, she told City Press.

Then, also this week, Standard Bank and the China Investment Corporation brought the Pembani deal to the board, according to Nicol.

While similar to the merger originally announced in May this year, it is technically a new deal after the first one had fallen through, she said.

Now the role of Mabindu in the proposed merged company will be something that “plays out in the negotiations”.

According to Mahanyele, the deal was struck between Pembani and Shanduka’s shareholders without her knowing.

On Wednesday, Shanduka put out a press release saying the long-awaited deal had fallen through.

On Thursday, it put out a new release announcing the deal was in fact on, indicating that Shanduka management seems to be out of the loop.

Apart from cash, Ramaphosa is leaving Shanduka with some of its property holdings as well as its 70% stake in local operations of MacDonald’s restaurants.

The original Pembani-Shanduka merger was billed as creating a R13.5?billion company, but this week’s deal promised to create a R11?billion group.

The difference stems from assets taken out by Ramaphosa and other shareholders as part payment for their shares, according to Mahanyele.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.