DNA and Super Group get ready to walk down the aisle

Alan Peat LIKE ITS chemical namesake deoxyribonucleic acid, the latest events surrounding the takeover of DNA Supply Chain Investments have been a complicated matter. But, according to DNA chief executive Mark Kaplan, the winning tape is now in sight. It all started last year when DNA said that it intended to introduce a strategic partner and a number of companies expressed interest in its offer. But it all seemed to be amicably heading down the path to finalisation when, in March, Super Group - the distributor of motor parts and electronic equipment - offered R283.9-million to buy DNA’s core operations which include Micor, Sherwood, Auto, Streamworks and Jumpoint. It also made a loan of about R22.5-m available to DNA. But before it could all be signed and sealed, another company entered the fray. This was an offer of R160-m from Mettle, through its subsidiary Sage Wise, to buy a controlling stake. But that fell through on June 2. The reason, according to DNA, was that on the face of it the offer was not capable of being implemented. Meanwhile DNA said it would continue negotiations with Super Group. When questioned by FTW on July 2, Kaplan said that their latest announcement was that Super Group had advised DNA that “the conditions precedent had been met, or waived by the group” and all that now had to happen was the transaction to be approved by the shareholders and the competitions board. Although Kaplan added that more than 51% of the shareholders had already expressed approval of the deal, this now had to be formally ratified. Not wishing to confuse a freight and trade journo, Kaplan didn’t spell out the complicated technicalities of the Johannesburg stock exchange. Rather, he said, effectively all that was needed was a formal shareholders’ meeting, and the marriage of DNA and the Super Group would be completed. And all the relevant parties are reported to be upbeat about the benefits such a transaction would afford their operations and customers. Said Kaplan: “Given the positioning of Super Group, we feel that significant value can be added to our operations.”