, LML4806 Assignment 2 Semester 1 2026 - DUE April 2026; 100%
CORRECT AND TRUSTED SOLUTIONS
QUESTION 1
Mahamba Logistics Ltd and Buffalo Haulage Ltd have entered into a
transaction in terms of which Mahamba Logistics Ltd will acquire and
hold all the assets and liabilities of Buffalo Haulage Ltd for a
consideration of R300 million, with Buffalo Haulage Ltd thereafter being
deregistered. The legal nature and consequences of this transaction
must be assessed with reference to the Companies Act 71 of 2008.
1.1 Identify the type of transaction that is contemplated
The transaction contemplated in the scenario constitutes a statutory
amalgamation or merger in terms of section 113 of the Companies Act
71 of 2008, and therefore falls within the category of a fundamental
transaction under the Act.
Section 113 defines an amalgamation or merger as a transaction in
terms of which the assets and liabilities of two or more companies are
combined, either into one of the existing companies (the surviving
company) or into a new company, and where at least one of the
constituent companies ceases to exist. In the present scenario,
Mahamba Logistics Ltd will acquire and hold all the assets and
liabilities of Buffalo Haulage Ltd, and Buffalo Haulage Ltd will be
deregistered following implementation. Mahamba Logistics Ltd is
therefore the surviving company, while Buffalo Haulage Ltd is the
disappearing company. This corresponds precisely with the statutory
definition of a merger or amalgamation.
Furthermore, the fact that Buffalo Haulage Ltd’s shareholders will
receive a cash consideration of R10.00 per share is consistent with
CORRECT AND TRUSTED SOLUTIONS
QUESTION 1
Mahamba Logistics Ltd and Buffalo Haulage Ltd have entered into a
transaction in terms of which Mahamba Logistics Ltd will acquire and
hold all the assets and liabilities of Buffalo Haulage Ltd for a
consideration of R300 million, with Buffalo Haulage Ltd thereafter being
deregistered. The legal nature and consequences of this transaction
must be assessed with reference to the Companies Act 71 of 2008.
1.1 Identify the type of transaction that is contemplated
The transaction contemplated in the scenario constitutes a statutory
amalgamation or merger in terms of section 113 of the Companies Act
71 of 2008, and therefore falls within the category of a fundamental
transaction under the Act.
Section 113 defines an amalgamation or merger as a transaction in
terms of which the assets and liabilities of two or more companies are
combined, either into one of the existing companies (the surviving
company) or into a new company, and where at least one of the
constituent companies ceases to exist. In the present scenario,
Mahamba Logistics Ltd will acquire and hold all the assets and
liabilities of Buffalo Haulage Ltd, and Buffalo Haulage Ltd will be
deregistered following implementation. Mahamba Logistics Ltd is
therefore the surviving company, while Buffalo Haulage Ltd is the
disappearing company. This corresponds precisely with the statutory
definition of a merger or amalgamation.
Furthermore, the fact that Buffalo Haulage Ltd’s shareholders will
receive a cash consideration of R10.00 per share is consistent with
