South Africa's Barloworld shareholders reject Saudi firm Zahid's $1.25bn bid
Shareholders of Barloworld voted against the buyout plan of Newco, a consortium of investors that include Entsha and Zahid Group, on Wednesday.
Last December, Barloworld confirmed Newco's intention to buy the company's entire issued share capital for ZAR 120 ($6.5) per share, valuing it at approximately $1.25 billion.
The deal did not get the requisite majority of votes from shareholders, thus a standby offer has been triggered, the Johannesburg Stock Exchange-listed company said.
Zahid Group is a distributor of heavy equipment machinery in the region.
(Writing by Cleofe Maceda; editing by Seban Scaria)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
20 hours ago
- Arabian Post
Union Properties Sees Q2 Profit Drop Despite Revenue Rise
Arabian Post Staff -Dubai Union Properties reported a sharp decline in second-quarter net profit, registering AED 8.74 million, a 52% fall from AED 18.3 million for the same quarter last year. The Dubai-listed developer attributed the downturn to heavier upfront investments channelled into development activities and upgrades to infrastructure across its portfolio. For the first half of 2025, profit stood at AED 14.56 million, significantly lower than the AED 34.77 million reported during the same period in 2024. Despite this decline in bottom-line earnings, the company recorded a notable improvement in revenue. Total income for the six-month period rose to AED 316 million, a 19% year-on-year increase compared to AED 266 million during the first half of 2024. ADVERTISEMENT The company's performance reflects a strategic pivot toward long-term asset enhancement, which has led to a temporary squeeze on margins. According to statements from company officials, this phase of intensified capital expenditure is aligned with efforts to revitalise core assets and push forward master-planned projects aimed at bolstering future recurring revenue. Union Properties has been seeking to reposition itself in the competitive Dubai real estate landscape, where both private and publicly traded developers are ramping up efforts to respond to shifting demand patterns in residential, commercial, and mixed-use spaces. The firm's latest investment push includes modernisation of infrastructure, land parcel optimisation, and enhancements across its flagship MotorCity community, as well as new project launches in high-growth corridors of Dubai. Market analysts indicate that the firm's choice to front-load development expenses may place temporary pressure on quarterly earnings but positions the company for stronger medium-term growth, particularly as Dubai's property sector remains buoyant. Real estate transaction volumes in the emirate have continued to show strength, driven by both domestic end-user demand and international investor interest. Union Properties has also been undertaking restructuring initiatives since 2022 in a bid to reverse a prolonged downturn marked by legal disputes, operational setbacks, and financial mismanagement. The group's current leadership has focused on stabilising the balance sheet, improving transparency, and advancing stalled developments. The company's equity structure has undergone changes, with efforts to attract new institutional investors and offload non-core assets. During the latest reporting period, the developer recorded a surge in project execution costs, which contributed to the narrowing of margins. Construction and infrastructure spending increased significantly, while administrative expenses remained relatively stable. The higher costs are partly reflective of an accelerated build-out of key developments and a recalibration of timelines to align with updated delivery schedules. The developer's revenue boost was attributed largely to stronger unit sales and improved rental income from existing properties. However, the impact of increased capital expenditure overshadowed these gains, resulting in lower profitability. The company's cash flow remains positive, supported by pre-sales and project advances, although liquidity management remains a focus area amid the ongoing investment cycle. Union Properties' board has reiterated its confidence in the current trajectory, describing the strategic investments as necessary for sustainable growth. Internal forecasts suggest that revenue streams will continue to expand into the second half of the year as multiple projects reach key development milestones. Delivery schedules have been tightened and operational efficiencies have been integrated to mitigate further cost overruns. The wider Dubai property market has shown continued resilience, with price growth moderating but staying positive. Analysts suggest that Union Properties' recent performance must be viewed in the context of its turnaround efforts and sector-wide transformation. Large-scale developers have increasingly shifted focus towards quality, lifestyle-oriented developments, a segment Union Properties is now actively targeting through its redevelopment strategy.
Zawya
a day ago
- Zawya
Union Properties' Q2 2025 net profit falls to $2.4mln
Dubai-listed developer Union Properties' net profit reached AED 8.74 million ($2.4 million) in the second quarter of the year, marking a 52% decline from AED 18.3 million a year ago. The decline was attributed to 'front-loaded investments in development activities and infrastructure upgrades'. Profit for H1 2025 plunged to AED 14.56 million from AED 34.77 million in the prior-year period. However, for H1 the developer made AED 316 million in total revenue, up from AED 266 million in H1 2024. Earlier this week, the developer signed an agreement to sell a real estate project in Motor City for AED700 million to settle its legacy debts. (Writing by Cleofe Maceda; editing by Brinda Darasha)
Zawya
a day ago
- Zawya
Abu Dhabi's Response Plus posts decline in net profit to $5.5mln
The UAE-listed Response Plus Holding's net profit dropped by around 25% to AED 20.32 million ($5.5 million) in the first half of the year. The pre-hospital care and emergency medical services provider did not disclose specific reasons for the drop in profitability. Revenue for the period reached AED 248.06 million, up by 18% from a year earlier. The company's board of directors has approved an interim cash dividend distribution of AED 18 million to the shareholders. (Writing by Cleofe Maceda; editing by Brinda Darasha)
