Deneb Investments to acquire majority stake in Dawning Filters for R80m

Deneb Investments Limited (Deneb) announced on October 9, 2025, an agreement to acquire an 80% stake in Dawning Manufacturing KZN Proprietary Limited t/a Dawning Filters ("Dawning Filters") for a cash consideration of R80,000,000. Dawning Filters, a South African filtration group, specializes in liquid, milling, dust, and air filtration products for various industries. The acquisition aligns with Deneb's growth strategy to enhance its industrial product manufacturing and distribution.

The effective date for the acquisition is anticipated to be around the end of February 2026, subject to various conditions, including regulatory approvals and a special resolution from Dawning Filters' shareholders. As part of the deal, Deneb will grant the sellers a "Put Option" to purchase their remaining 20% stake, exercisable for six months commencing on the fourth anniversary of the effective date, with a maximum aggregate consideration of R120,000,000.

As of February 28, 2025, the net assets of the Dawning Group were valued at R52,295,816, with profits after tax for the 12-month period ending on the same date reported as R15,697,600. The transaction is classified as a Category 2 transaction under JSE Limited's Listings Requirements.