Sasfin Holdings Limited (Sasfin) is pleased to announce the agreement and conclusion of transaction terms relating to the proposed B-BBEE transaction between Sasfin and Women Investment Portfolio Holdings Limited (WIPHOLD).
The terms include WIPHOLD SPV (a wholly-owned subsidiary of WIPHOLD) subscribing for 25.1% of Sasfin’s issued share capital, post the voluntary repurchase offer referred to below, for a total consideration of R413 million. WIPHOLD and Sasfin have also entered into a services agreement in terms of which WIPHOLD will provide Sasfin with services relating to promoting and growing Sasfin’s business, particularly in the area of business development and in key internal focus areas such as group procurement, recruitment, stakeholder relations and providing the Sasfin group with strategic inputs in its transformation journey. In addition to the above, WIPHOLD has further undertaken to become a shareholder of reference to Sasfin.
Due to Sasfin’s strong capital position, Sasfin has no need for the capital raised from the transaction and will be returning the proceeds of the subscription to shareholders through a voluntary repurchase of shares. Should the entire allocation be tendered, as is expected, the subscription price would equate to R51 per Sasfin share.
According to Sasfin CEO Roland Sassoon, concluding terms with WIPHOLD represents a milestone for the Sasfin Group: “We are extremely excited to conclude a B-BBEE transaction with an investor of WIPHOLD’s calibre. This transaction underscores Sasfin’s commitment to transformation and will result in Sasfin having the highest black equity ownership of any JSE-listed banking group.
“Given the strategic nature of WIPHOLD’s shareholding and the excellent cultural fit between our respective organisations, we believe this transaction places Sasfin in a strong position to become a far more meaningful player in many of our activities. WIPHOLD is highly reputed and has experience in banking and financial services, having been owners of, and partners to, a number of well-known financial services concerns,” Sassoon said.
Speaking on the conclusion of the terms of agreement, WIPHOLD founders Louisa Mojela and Gloria Serobe were excited at the prospect of working closely with Sasfin’s board and executives in growing the business and building Sasfin’s stakeholder and corporate relations: “Financial services has always been a key focus for WIPHOLD. The sector is a cornerstone of any economy and critical to realising WIPHOLD’s vision of the economic empowerment of black women.
“We are therefore delighted to further build our operational presence in the sector through our new partnership with Sasfin. WIPHOLD focuses on investing in businesses that we believe have the ability to deliver strong returns over the long-term and that have high calibre management and impeccable corporate governance. Sasfin more than meets those criteria. We look forward to working together to grow and transform the business,’’ Serobe said.
After the conclusion of the transaction, WIPHOLD will hold 25.1% of the ordinary shares in the issued capital of Sasfin.
The transaction remains subject to a number of conditions including regulatory and shareholder approvals.