Mvela Group Shareholders Block Buyout

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, Reuters wrote Tuesday. Blackstar is an Africa-focused investment company listed on London’s AIM market for smaller firms.

(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.