Royal Bafokeng, PSL club boss grab Dis-Chem shares

BEE consortium buys 10% of pharmaceuticals retailer

A black economic empowerment consortium has bought over 10% of Dis-Chem shares.
A black economic empowerment consortium has bought over 10% of Dis-Chem shares.
Image: Gallo Images/Luba Lesolle

The founder of Dis-Chem, one of SA's biggest pharmaceuticals and cosmetics retailers, has agreed to sell more than 10% of its ordinary shares to a BEE consortium comprises Royal Bafokeng Holdings and prominent businessman and Premier Soccer League football club AmaZulu owner Sandile Zungu for R2.5bn.

The Saltzman family made the announcement through the Stock Exchange News Service on Monday.

The family, through their shareholding vehicle, Ivlyn Local Investment had agreed in principle to dispose of 86,468,741 Dis-Chem ordinary shares, representing 10.05% of Dis-Chem's issued share capital to the BEE consortium.

“Black Panther comprises of GloCap Empowerment Private Equity Fund, Zungu Pharmaceuticals (part of Zungu Investments Company) and Temo Capital (“Temo”) (part of Modidima Family Office)," read the statement.

“GloCap Empowerment Fund 6 is the investor in the BEE transaction through the Black Panther Consortium and GloCap is the private equity manager of Fund 6. Larry Nestadt and Joe Mthimunye have an interest in the economic benefits in the form of a carry in Fund6. Ivan Saltzman is an investor in Fund6.”

The statement said the BEE transaction has now been approved by all the BEE consortium members and the required financing agreements have been entered into.

“Accordingly, the BEE Transaction has become unconditional.

“The price at which the BEE transaction was concluded was at a 17.5% discount to the 30-day volume weighted average price as at the close on Friday, 20 August 2021 and is subject to a lock-in period of the BEE consortium for a three-year period commencing on Monday, 23 August 2021.

“The flow of funds and transfer of Dis-Chem ordinary shares to the BEE Consortium members will take place on Tuesday, 31 August 2021.”

The transaction will result in RBH holding 6.63%,  Black Panther Consortium  3.42%, Glocap 1.34%; Zico 1.33% and Temo 0.75% of Dis-Chem.

The transaction would result in Ivlyn's stake in Dis-Chem decreasing to 35.15% from 45.20%.

Royal Bafokeng Holding had not responded by the time of publication.

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.