* More than 20 pct of shareholders block deal
* Blackstar says to look for other opportunities
JOHANNESBURG, DEC 20 (Reuters) – South African
investment firm Mvela Group said on Tuesday its
shareholders had blocked a buyout offer from London-listed
Blackstar Group, sinking a $215 million deal.
Blackstar, an Africa-focused investment company listed on
London’s AIM market for smaller firms, said this month it would
buy Mvela in a cash and share deal valuing the company at about
1.8 billion rand ($215 million).
Buying Mvela would have given Blackstar control of one of
South Africa’s best known black-owned investment firms and would
have made the company large enough for trade on London’s main
board.
Mvela said in a statement that more than 20 percent of its
current shareholders had decided to vote against the offer,
enough to sink the buyout under the original terms of the deal.
Blackstar said in a statement that the outcome was
“disappointing”, adding it would continue to seek new
opportunities.
Shares of both Mvela and Blackstar were untraded.
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