Shareholders Overwhelming Approve Ethos' R1,32bn Buyout Of Brandcorp
Leading South African private equity manager, Ethos Private Equity today won 97.79% shareholder approval for the R1,32 billion public-to-private buyout of Brandcorp. The transaction has already received unconditional approval from the Competition Authorities.
“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,” comments Ethos partner, Shaun Zagnoev.
Brandcorp, which was listed in 1997, is a value added distributor of niche industrial and retail products. The company operates three divisions: Tools & Hardware (trading as Matus), Leisure & Accessories (trading as Interbrand) and House & Home (trading under MIC, Prestige, Decocraft and Moto Quip).
Brandcorp management received multiple expressions of interest from various parties wishing to acquire the group over the past months, yet chose to support the Ethos offer.
Shaun Zagnoev commented, “I believe management was supportive of the Ethos offer given our experience and recommendations they received from professional advisors.”
Ethos partner, Christo Roos adds, “The transaction facilitates the introduction of BEE, together with the opportunity for the next level of management to actively participate in meaningful equity; both crucial components in setting the ground for strategic, long-term oriented management decision-making. As a focused equity provider, Ethos is able to fully align our expertise and intellectual capital to support Brandcorp’s market leading position in the branded products segment enabling the group to benefit from anticipated growth in the South African economy.”