New Potential Tiger Auto Buyer Appears
South Africa’s Tiger Automotive has confirmed it received a written expression of interest in purchasing the company from prominent South African private equity manager Ethos Private Equity. The company has offered to pay R 1.05 billion (£76.2 million) for Tiger Automotive. However, Tiger Automotive added that this document is in no way a binding offer, nor is it a notice of firm intention to make an offer on the tyre and wheel distributor.
Several rumours about potential buyers for Tiger Automotive have circulated in recent months. In mid-October Tiger received a proposal that, according to a statement released by the company’s board of directors, “may result in an offer to acquire the entire issued share capital of the company.” Speculation pointed towards Bidvest, who currently owns a 20 per cent share in Tiger Automotive, as being the author of this offer. Keith Rivers, chief executive of Tiger Automotive, when asked if the Ethos bid was the only serious received by the company, responded “offers from other companies were market speculation. Ethos is the only company that has made an offer.” However a South Africa based analyst has been quoted as saying it is ‘surprising’ that Bidvest is no longer showing interest in acquiring Tiger Automotive.
According to Tiger, 56 per cent of company shareholders would vote in favour of an Ethos buyout. Any such offer would of course be subject to Ethos performing a due diligence exercise.
Comments