Sasfin Wealth to sell stake in Efficient Group

DURBAN - Sasfin Holdings subsidiary Sasfin Wealth yesterday said it will sell its 21.10 percent stake in the Efficient Group to Summit Private Equity for R146.26 million, with the proceeds from the disposal expected to be used to grow its core businesses.

Sasfin said the rationale for the disposal of its stake is that Sasfin Wealth received an unsolicited offer for its minority interest in Efficient at a consideration above Sasfin Wealth’s carrying value in respect of Efficient.

“Sasfin believes that the disposal represents an opportunity to deploy capital more effectively within the Sasfin group to grow core businesses,” the group said.

Sasfin added that in terms of the disposal agreement, Summit Private Equity will also acquire a further 15.04 percent interest in Efficient from another exiting shareholder.

“The purchaser has also concluded a further sale of shares agreement in terms of which it will acquire an additional 1.25 percent interest in Efficient from a further exiting shareholder on the same terms and conditions as are contained in the disposal agreement mutatis mutandis,” the group said.

Summit Private Equity will hold 37.39 percent stake in Efficient after the completion of all disposals.

The disposal is expected to be concluded by no later than November 23 and it will be settled in cash.

However, Sasfin said the disposal is also subject to regulatory conditions which include that all regulatory requirements and shareholder approvals required for the implementation of the disposal are complied with and obtained.

The parties must also meet the November 23 deadline or a later date following an extension in accordance with the terms of the disposal agreement.

“The effective date of the disposal shall be the third business day after the day on which the last of the suspensive conditions are fulfilled or waived, as the case may be,” the group said.

The group added that the audited value of Sasfin’s net assets that are the subject of the disposal as at the end of June was R119.12m and audited profit after tax was R8.16m.

The disposal is a category 2 transaction in terms of the JSE Listings Requirements and therefore does not require shareholder approval.

Sasfin has been trading under cautionary notice on the JSE and the announcement of its stake in Efficient has resulted in the withdrawal of the notice.

BUSINESS REPORT