Tag: WeBuyCars

The Dome sold to WeBuyCars

South Africa’s largest multipurpose indoor arena, the Ticketpro Dome in Northgate, Gauteng has been sold by its owners. The buyers, WeBuyCars, do not operate in the events arena.

WeBuyCars has confirmed the purchase is to increase the company’s national footprint.

The Dome has been sold by the owners, Sasol Pension Fund.

On Monday, RX Venue management company said the ban on public gatherings had meant that during 2020 and 2021, the indoor arena was unable to operate.

“This is another devastating blow for the exhibitions, events and entertainment industry due to Covid-19.”

The Dome was originally intended to be a permanent motor showroom for consumers to view and test drive a variety of vehicle brands under one roof, said WeBuyCars.

According to Faan van der Walt, WeBuyCars CEO, WeBuyCars will now realise the original vision for the Dome and develop it into a large pre-owned car dealership.

“The Dome will be able to store approximately 1 500 vehicles, providing customers with an enticing experience of vehicle choices along with the fascinating design and layout of the Dome,” said Van der Walt.

Transaction Capital buys 49.9% stake in WeBuyCars

By Philippa Larkin for IOL

Taxi financer Transaction Capital has announced that it has concluded a subscription deal to buy a 49.9% stake in automotive retailer WeBuyCars, for R1.84billion.

The group said that WeBuyCars would continue to operate as an independent business within its specialised market, adjacent to SA Taxi, with this investment establishing Transaction Capital’s third market vertical. It said the investment had no integration risk for it.

WeBuyCars is currently owned 60% by the family trusts of founders Faan and Dirk van der Walt, 31.5% by Fledge Capital Proprietary and 8.5% by minority shareholders.

Transaction said it would pay R1.47bn in cash and R16467000 on newly issued ordinary shares at R20 per share for an aggregate value of R329.3million.

It said favourable trends amplified by Covid-19 were likely to accelerate growth in the used vehicle segment.

Chief executive David Hurwitz said: “This investment is an exceptional opportunity to own a significant interest in a trader of used vehicles in South Africa. The investment in WeBuyCars will be immediately value accretive, converting interest income on our undeployed capital into higher yielding operating earnings, accelerating Transaction Capital’s earnings growth rate. Options are in place, which if exercised and implemented, after regulatory approval, would result in Transaction Capital increasing its interest in WeBuyCars at a future date.”

The Competition Commission earlier this year scuppered Naspers’s deal to buy WeBuyCars over fears that it could have led to a substantial reduction in competition in the car-buying market.

Transaction Capital said that WeBuyCars was uniquely positioned in its market segment, highly competitive and entrepreneurial founder-led business, with an impressive 20-year track record.

Hurwitz said he expected Transaction Capital to return to strong organic earnings and dividend growth above 2019 pre-Covid-19 levels for the 2021 financial year and beyond. Transaction Capital declined 0.38% on the JSE yesterday to close at R18.20.

 

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My Office News Ⓒ 2017 - Designed by A Collective


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