Description

LML4806 ASSIGNMENT 2 2026
DUE APRIL 2026

Mahamba Logistics Ltd and Buffalo Haulage Ltd have concluded an agreement in terms
of which Mahamba Logistics Ltd will acquire and hold all the assets and liabilities of
Buffalo Haulage Ltd for R300 million (the ‘Transaction’). The material terms of the
Transaction include that Mahamba Logistics Ltd will pay the shareholders of Buffalo
Haulage Ltd a cash consideration of R10.00 for each Buffalo Haulage Ltd share held
and that, pursuant to the implementation of the Transaction, Buffalo Haulage Ltd will be
deregistered.

QUESTION 1
Identify the type of transaction that is contemplated in the scenario above and
explain whether the companies that are involved in this transaction are regulated
companies for purposes of the Companies Act 71 of 2008.