Deal with Bahrain group will create a black-owned industrial conglomerate
Mergence Group makes bold play by acquiring 51% stake in BFG Africa
Financial services boutique Mergence Group has made a bold play to create a black-owned industrial conglomerate by acquiring a 51% stake in BFG International Composites (Africa). The value of the deal was not disclosed but Mergence MD Masimo a Badimo Magerman said BFG Africa was the first of an envisaged series of deals to build an industrial silo that could be listed on the JSE. Bahrain-based BFG International will retain the balance of the shares in BFG Africa. “We would like to build a business with revenues north of R1bn before looking at a possible JSE listing.” He said BFG Africa would be aggressively expanding its infrastructure, mining, automotive, transport and architectural footprint on the African continent. “The rationale for the on-balance-sheet acquisition is to provide BFG International with a local BEE partner that can assist with unlocking further opportunities in the composites space.” Magerman said the BFG plant in SA would officially be launched in January 2019. ...
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