HomeBusiness DigestClan, Pioneer to merge

Clan, Pioneer to merge

Staff Writer

CLAN Holdings Ltd (Clan) and Pioneer Development Company (Pvt) Ltd (Pioneer) are merging in a deal worth $7,5 billion.

>The new company will be known as Pioneer Development Corporation Africa Ltd (PDC) and will be listed on the bourse on November 25.

Clan intends to fund the deal through a rights offer to raise the rights offer proceeds of $7 499 205 000.

The acquisition entails the proposed acquisition by Clan of the entire issued share capital of Pioneer for a total amount of $7 499 205 000, payable to an amount of $2 712 837 419 through commercial paper and the balance of $4 777 367 581 in cash.

On the implementation date, the amount of $2 721 837 419 would be utilised to recapitalise the enlarged Clan group through the issue of the commercial paper Pioneer or its nominee representing a reinvestment into the enlarged Clan group by the major shareholders of a portion of the proceeds arising from the rights offer.

Clan said through the restructuring, its share capital would be increased to give effect to the acquisition and rights offer and ensure adequate provision for on-going expansion and working capital requirements of the resultant enlarged group.

The company said it would also have to amend its existing articles of association and bring them in line with current provisions of the Companies Act and ZSE listing requirements.

The companies memorandum would also be changed and substituted to more accurately reflect its business objects.

The company said the name change from Clan Holdings Ltd to Pioneer Corporation Africa Ltd and the appointment of two additional directors to the Clan board was also being proposed to better reflect the identity of the enlarged group assuming implementation of the proposed transaction.

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