DaimlerChrysler sells stake to BEE group in R500m deal

Thomas McLachlan

Thomas McLachlan

DaimlerChrysler Motors, owner of Mercedes- Benz and Jeep, yesterday announced that, together with Sandown Motor Holdings, it had sold 40 percent of its Sandown retail dealership to a BEE consortium in a deal worth R500million.

DaimlerChrysler, which previously owned 75 percent of the dealership, will be selling 25percent to the True Class consortium. Entrepreneur Roy McAllister's 25 percent share in the company will be taken down to 9,5 percent.

The True Class consortium, led by True Class Holdings, said it functioned as a broad-based BEE investment company in the motor industry. Its shareholders include a variety of famous South Africans, including businessman Lot Ndlovu, musician Yvonne Chaka Chaka and television personality Felicia Mabuza-Suttle.

Ndlovu said that investment company Makalani Holdings funded R300million of the purchase price, the DaimlerChrysler BEE foundation funded R67,5million and DaimlerChrysler and Roy McAllister together funded the remainder.

"One of the 'non-negotiable' objectives of this transaction was that genuinely disadvantaged communities had to benefit, not just entrepreneurs," said McAllister.