- Dis-Chem's founders are selling a 10% stake in the company to Royal Bafokeng Holdings and a consortium of BEE companies.
- They are paying 17.5% below the average market price of Dis-Chem shares over the past month.
- Alongside the BEE transaction is an agreed transformation plan to fast-track greater inclusivity and support greater diversity across the business.
Royal Bafokeng Holdings is buying a stake of almost 7% in Dis-Chem from the Saltzman family, who founded the pharmaceutical retailer.
Dis-Chem was founded in 1978 by pharmacists Ivan and Lynette Saltzman, who are lowering their shareholding in the group from above 50% to around 31% through a number of deals.
Last week, they sold a 7% stake in the company for R1.96 billion to investors in the market. They are also selling 3.75% to senior executives, including the incoming CEO Rui Morais, who will succeed Ivan Saltzman.
The family is now also selling a 10% stake in the company to BEE groups, which include Royal Bafokeng as well as the Black Panther consortium.
Black Panther comprises GloCap Empowerment Private Equity Fund, Zungu Pharmaceuticals (part of Zungu Investments Company [ZICO]) and Temo Capital (part of Modidima Family Office).
"The sale of shares to a BEE consortium has long been on our agenda but it was imperative to find the right partners. We explored various opportunities and options and we are confident that Royal Bafokeng Holdings and Black Panther are the right fit for the company," says Ivan Saltzman, Dis-Chem CEO.
Royal Bafokeng Holdings is an African community investment company which manages investments - in infrastructure, telecoms, mining and financials services - worth around R30 billion.
Alongside the BEE transaction is an agreed transformation plan to fast-track greater inclusivity and support greater diversity across the business, said the pharmaceutical retailer in a statement.
Albertinah Kekana CEO at Royal Bafokeng said: "We are very proud to be a key member of the consortium that concluded this deal. Dis-Chem is one of the leading players in the pharmaceutical industry in South Africa. We hope to work closely with the management team to deliver on the opportunities that lie ahead."
Dis-Chem said that the required financing agreements have been finalised for the BEE stakeholders and the transactions are now unconditional. The BEE partners bought the shares at a 17.5% discount to the 30-day volume weighted average share price, and they can't sell for the next three years.
The shareholding of the BEE Consortium in Dis-Chem will be as follows:
Royal Bafokeng Holdings: 6.63%
Black Panther Consortium: 3.42%
• Glocap : 1.34%
• Zico: 1.33%
• Temo: 0.75%