Capitalworks Investment Partners (Pty) Limited along with selected members of TBCo management entered into a sale agreement to acquire The Building Company (Pty) Ltd from Pepkor Holdings Limited (JSE:PPH) for ZAR 1.2 billion on February 29, 2024. The disposal of TBCo will streamline Pepkor?s portfolio of businesses, enhancing the Group?s return on capital and optimise shareholder returns. Following the Proposed Transaction, TBCo will be well positioned strategically and operationally to pursue growth. The total consideration payable on closing of the Proposed Transaction will be ZAR 1.2 billion subject to an escalation rate of 8.5% per annum from October 1, 2023 until the Proposed Transaction?s closing date. The implementation of the Proposed Transaction is subject to the usual regulatory
approvals, including from the South African competition authorities, being obtained. Pepkor intends to use the net disposal proceeds to reduce debt, in line with the Group?s ambition to maintain a flexible capital structure and to fund strategic growth and value accretive initiatives. Werksmans acted as legal advisor to Pepkor.