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Laser Group in BEE deal with Pape

BUSINESS LIVE / 16 AUGUST 2018 - 05:04 / SISEKO NJOBENI

Privately owned logistics company Laser Group has concluded a broad-based BEE (B-BBEE) transaction resulting in Pape Fund Managers taking a 48.3% equity in the company for an undisclosed amount.

Pape and a management consortium that includes Laser CEO Iain Johnson and chair Philip Hayes have acquired 100% of the equity of the group, lifting its black ownership to 51%. Pape is a level-one BBBEE fund manager.

The transaction is expected to accelerate the company’s competitiveness in e-commerce, health-care, automotive, retail and business-to-business markets. Picture: ISTOCK

Johnson said on Wednesday that the increased black ownership would benefit the company’s operating entities Laser Logistics, DPD Laser Express Logistics and GAC Laser International Logistics.

"Our customers want to work with empowerment suppliers. It was important for us to find the right black-owned partner. Laser is now one of the few independent logistics players in South Africa that is majority black-owned," Johnson said.

Hayes said on Wednesday the transaction would accelerate the company’s competitiveness in e-commerce, health-care, automotive, retail and business-to-business markets.

Laser, which had a turnover of R2.4bn in 2017, specialises in retail distribution through its Laser Logistics Retail and Laser Logistics Cold Chain businesses, as well as international clearing, forwarding and project logistics.

Hayes said the group’s 51% black ownership was made up of the black participation in Laser’s management consortium as well as the significant investment from Pape, which manages three funds and a principal investment portfolio totalling in excess of R1bn.

Pape CEO Zuko Kubukeli said on Wednesday the firm’s newly established private equity fund, Pape Fund 3, invested in targeted mid-cap, unlisted SA businesses. "Pape Fund 3 views this business [Laser Group] as holding enormous potential for future growth and expansion," he said.

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LINK : https://www.businesslive.co.za/bd/companies/2018-08-16-laser-group-in-bee-deal-with-pape/

Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER

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