Novus Holdings shook the JSE last November when it launched an unexpected bid to acquire control of the Mustek technology group. This aggressive play, preceded by Novus’s rapid accumulation of over 35% of Mustek’s equity, immediately triggered mandatory offer requirements, setting the stage for a complex corporate manoeuvre. Now, the Competition Commission has recommended that the Competition Tribunal approve the proposed acquisition.
The initial November bid from Novus, led by CEO Andre van der Veen, presented Mustek shareholders with a trio of options: a cash offer below the prevailing market price, a mixed cash-and-share proposition, or an all-share exchange.
This bold initiative signalled an intent to significantly reshape Mustek’s ownership structure, which forced the hand of Mustek’s leadership.
Mustek CEO Hein Engelbrecht, alongside key figures, publicly declared their intention to resist the mandatory offer, pledging a commitment to the company’s continued listing on the JSE.
Financial headwinds and major 2024 loss
In 2024 an impairment of Mustek’s investment in Zaloserve (Sizwe IT Africa), which has been classified as an asset held for sale resulted in massive share price declines.
Additionally, the tech supplier cited the “abrupt and extended suspension of load-shedding” as a major factor, impacting sales of its popular backup power products.
“The operating environment for the year ended 30 June 2024 was marked by tough economic conditions and cautious market sentiment leading up to the general elections in South Africa,” the company said ahead of its results.
“Prevailing uncertainty froze corporate and government spending and the unexpected abatement of load-shedding abruptly ended the renewable energy boom, which fuelled our growth last year.”
Novus closed in
Novus, formerly known as Paarl Media, is controlled by A2 Investments Partners has expanded its operation beyond its core printing and packaging business.
The Competition Commission’s conditional approval recommendation includes provisions for a two-year moratorium on retrenchments and preferential employment conditions.
The Competition Tribunal will now review the Commission’s recommendation and the proposed conditions before issuing its final ruling.
