Mauritius-based Bayport Management Ltd. entered conditional share purchase agreements to acquire 51% of seven companies that have been providing insurance services to the company.
Bayport will pay 23.1 million South African rand in cash and 114,647 ordinary Bayport shares as initial consideration for the seven companies, with deferred consideration of 5.4 million rand and 26,694 shares payable subject to achieving a 20% growth rate per year for three years.
The companies to be acquired are The Real Automobile Finance and Insurance Consulting Co. Pty. Ltd.; Peak Hour Consultants Pty. Ltd.; Traficc Global Pty. Ltd.; Green Light Insurance Brokers Pty. Ltd.; Built to Last Pty. Ltd.; Traficc Maintenance Plans Pty. Ltd.; and Sugar Magnolia Pty. Ltd.
Completion of the acquisition is subject to regulatory approval and the receipt of certain change of control consents, and Bayport and Picasso Moon Trust entering into an option agreement to acquire 51% of the issued shares in Mauritius-incorporated Picasso Moon Investments Ltd. for 1.6 million rand and 8,111 ordinary Bayport shares.
If all shares that form part of the payment for the various deals are issued, they will represent 0.486% of Bayport's issued share capital.