Dominic Sewela's Barloworld 1.2 Billion Bid Gets Pic Backing

South Africas largest asset manager endorses Dominic Sewelas takeover, boosting total shareholder support to 46.9 for privatization.

Newco pledges a 13.5 BEE transaction post-acquisition, contingent on delisting, aligning with PICs public interest requirements.

Standard Bank commits 913 million to the bid, while Barloworlds largest minority shareholder opposes, citing undervaluation concerns.

The Public Investment Corporation PIC, one of South Africa's largest institutional investors, has formally committed to backing Newcos proposed R23 billion 1.2 billion acquisition of Barloworld, a leading industrial conglomerate led by CEO Dominic Sewela.

The PIC has pledged its support by agreeing to accept a standby offer for 41.6 million Barloworld shares, which translates to 21.93 percent of the companys total issued shares. However, should Barloworld remain listed on the Johannesburg Stock Exchange JSE, the PIC could retain a portion of its holdings to comply with internal index weighting requirements.

The proposed takeover of Barloworld, launched by a consortium led by Sewela and Saudi Arabias Zahid Group, first surfaced in late 2024 . Although the PIC had previously raised red flags over Barloworlds governance processes, the new commitment suggests those concerns may have been sufficiently addressed.

Barloworld shares are listed on both the Johannesburg Stock Exchange JSE and A2X Markets. If the consortium secures more than 90 percent shareholder support, the company will delist and move into private ownership under Newco. However, should Barloworld remain listed, the PIC has reserved the right to retain a portion of its stake to meet index-weighting obligations.

To secure regulatory and public sector backing, Newco has also pledged to launch a 13.5 percent broad-based Black Economic Empowerment BEE transaction post-acquisition a condition tied closely to the PICs public interest mandate.