(Refiles to remove extraneous word in first sentence)
JOHANNESBURG May 13 South African conglomerate
Bidvest Group said on Monday it would offer to buy out
minority shareholders of outsourcing firm Mvelaserve in
a $67 million cash deal.
Bidvest, which currently owns just under 35 percent of
Mvelaserve, said it had already agreed to buy a further 17.7
percent stake in the company from investment firm Mvelaphanda
Once that transaction wins regulatory approval, Bidvest said
it would offer to buy the remaining shares of Mvelaserve at up
to 9.1 rand per share, valuing the deal at 608.8 million rand
However, Bidvest said the price depended on its offer being
recommended by Mvelaserve's board.
If the board does not recommend the offer, Bidvest said it
would go directly to shareholders with a lower bid of 8.50 rand
per share, putting pressure on the board to back the deal.
Bidvest CEO Brian Joffe said last month he would go directly
to shareholders of drugmaker Adcock Ingram after the
board of that company spurned a $675 million buyout offer.
Bidvest, which has businesses in everything from catering to
cars, has a reputation of buying underperforming assets that can
benefit from its distribution network and customer base.
Mvelaserve, once part of the now dwindling Mvelaphanda
group, provides cleaning, catering and other services to South
Mvelaphanda was one of South Africa's most prominent black
empowerment companies, founded by politician and businessman
Shares of Mvelaserve were up 3.1 percent at 8.45 rand.
Shares of Bidvest were down nearly 1 percent.
($1 = 9.1121 South African rand)
(Reporting by David Dolan; Editing by Ed Cropley)