R23 Billion Lesson: Barloworld ruling proves every clause costs
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GUEST - Andrew Bahlmann, Chief Executive Corporate & Advisory, Deal Leaders International
The recent developments in the R23 billion Barloworld takeover offer valuable lessons for dealmakers and corporate leaders alike. The ruling by the Takeover Regulation Panel (TRP) requiring Newco - the consortium led by Gulf Falcon Holding of Saudi Arabia’s Zahid Group and Entsha Holdings - to pay shareholders the full R120 per share initially offered, rather than the adjusted post-dividend R118.80, has turned what seemed a procedural matter into a cautionary tale for the M&A community.
At one level, the issue appears minor: a question of whether the interim dividend of R1.20 should have reduced the final payout. Yet the consequences are anything but small, adding roughly R225 million to the deal’s final cost and introducing reputational and timing risks at a critical juncture. It serves as a stark reminder that in transactions of this scale, even the smallest oversight can have material implications.
The recent developments in the R23 billion Barloworld takeover offer valuable lessons for dealmakers and corporate leaders alike. The ruling by the Takeover Regulation Panel (TRP) requiring Newco - the consortium led by Gulf Falcon Holding of Saudi Arabia’s Zahid Group and Entsha Holdings - to pay shareholders the full R120 per share initially offered, rather than the adjusted post-dividend R118.80, has turned what seemed a procedural matter into a cautionary tale for the M&A community.
At one level, the issue appears minor: a question of whether the interim dividend of R1.20 should have reduced the final payout. Yet the consequences are anything but small, adding roughly R225 million to the deal’s final cost and introducing reputational and timing risks at a critical juncture. It serves as a stark reminder that in transactions of this scale, even the smallest oversight can have material implications.
