Saudi company to squeeze South African shareholders in R23 billion buyout
Barloworld is set to be acquired by a consortium of Saudi and South African investors, with shareholders who did not vote in favour of the deal set to be squeezed out.
Barloworld is a JSE-listed industrial company and is the exclusive distributor of Caterpillar construction equipment in Southern Africa.
Newco, which comprises Gulf Falcon Holding, a subsidiary of Saudi Arabia’s Zahid Group, and Entsha, a company linked to Barloworld CEO Dominic Sewela, is planning on acquiring Barloworld.
The Zahid Group offers a range of services, including construction, energy, manufacturing, travel, finance, hospitality, oil and gas, and marketing.
Barloworld shareholders have now confirmed that Newco’s R23 billion Standby Offer was closed on Friday, 7 November 2025.
The offer was accepted by roughly 97.6% of the Standy Offer Shares. Together with the Barloworld Ordinary Shares already held by Newco, the consortium holds 96.5% of the total issued shares.
Newco now intends to invoke the provisions of section 123 of the Companies Act to acquire all of the Barloworld Ordinary Shares already held compulsorily for R120, also known as a squeeze-out.
“We are pleased with the overwhelming success of the Standby Offer. This result accomplishes what we set out to achieve when we launched our bid to acquire Barloworld,” said Sydney Mhlarhi, spokesperson for Newco.
“Following this outcome, we intend to initiate a squeeze-out of the remaining Barloworld shareholders and take the company private.”
“This will enable us to ensure long-term support for the company’s existing industrial growth strategy, while retaining the company’s DNA as a South African industrial champion.”
Upon completion of the squeeze out, Newco and certain Excluded Shareholders will hold all of the Barloworld Ordinary Shares.
An application will also be made for the termination of the listing of Barloworld Ordinary Shares on the JSE and A2X. Further notice will contain further details regarding the suspension of trade on the stock exchanges.
The deal has not been without controversy, with shareholders previously citing concerns of Sewela’s involvement in the deal.
Loading ...