Saudi Zahran aims to acquire the African Caterpillar distributor and delist it from the stock exchange.

A bid has been offered by a consortium led by Gulf Falcon Holdings - part of the Saudi Zahid Group - and South Africa's Entsha Ltd, linked to Barloworld's CEO Dominic Sewela, for 120 South African Rand per share to acquire the South African company Barloworld.

The Gulf Falcon and Entsha bid presents an 87% premium on the average share price of Barloworld - the African distributor for American company Caterpillar - over the 30 days prior to trading warnings announced in April, raising the value of shareholder shares to 123.10 Rand per share, factoring in declared dividends.

If this acquisition bid is approved, Barloworld will become a private company, as the Zahid Group indicated that it will delist its shares from the stock exchange. The Saudi group, which already owns an 18.9% stake in Barloworld, expressed its long-term confidence in the company's fundamentals, and the deal aligns with Zahid's broader strategy to expand its influence in heavy equipment distribution.

It is worth noting that Barloworld operates in several African countries and has faced scrutiny due to potential violations of export regulations in its Russian operations. Zahid Group's offer comes amidst increasing investments from Middle Eastern countries in Africa, including projects by Saudi Arabia's ACWA Power and DP World's ports in Dubai.