IOL - BUSINESS REPORTS - COMPANIES / 31 AUGUST 2021 - 15.44 / EDWARD WEST
ROYAL Bafokeng Holdings is buying a stake of almost 7 percent in Dis-Chem Group from the group’s founding Saltzman family, who are reducing their stake in the retail pharmacy chain.
Dis-Chem last week announced a potential black economic empowerment (BEE) tie-up when the family outlined plans to reduce their shareholding from above 50 percent to about 31 percent through a number of transactions. The names of the black economic empowerment (BEE) partners were not announced at that stage.
The transactions involved selling a 7 percent stake in the company for R1.96 billion to investors in the market, while 3.75 percent went to senior executives.
The family is selling a 10 percent stake to the BEE groups, Royal Bafokeng (6.63 percent stake) and the Black Panther consortium (3.42 percent), which comprises GloCap Empowerment Private Equity Fund (1.34 percent), Zungu Pharmaceuticals (1.33 percent) and Temo Capital (0.75 percent).
Dis-Chem said yesterday the financing agreements had been finalised for the BEE stakeholders. The BEE partners bought the shares at a 17.5 percent discount to the 30-day average share price, with a three-year lock-in.
Dis-Chem was founded in 1978 by pharmacists Ivan and Lynette Saltzman.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER