Brandcorp To Go To Ethos In R1.32bn Buy-out
South African fund manager Ethos Private Equity has won 97.79% shareholder approval for their R1.32bn public-to-private buy-out of Brandcorp.
The transaction has also, they reported, received unconditional approval from the South African competition authorities.
Ethos partner Shaun Zagnoev commented, 'The overwhelming shareholder support for this transaction strongly indicates that significant value can be created for selling shareholders in public-to-private transactions. Ethos strongly believes that the premium to market price reflects our confidence in this business and management to grow Brandcorp and reaffirms our appetite to pay a good price for good businesses.'
Brandcorp, which was listed in 1997, is a value added distributor of niche industrial and retail products.
Ethos, established in 1984, announced in October 2006 the closing of Ethos Fund V with R5.5bn (US$750m) equity available for investment.
The Brandcorp transaction represents the fifth investment in Fund V, following previously announced transactions: Kanderlane, Plumblink, Moresport (Sportsmans Warehouse and Outdoor Warehouse) and Alexander Forbes.