Ethos Capital sells part of its shareholding in Channel VAS

Investment holding company Ethos Capital, listed on the Johannesburg Stock Exchange, has sold a 1.4% stake in Channel VAS, a provider of airtime credit services and mobile financial solutions across 28 countries in Africa. Ethos Capital sold the stake at a consideration of $5 million (R76.6 million).

The sale consideration has valued Ethos Capital’s stake in Channel VAS at $36.7 million (a 16% premium to the valuation as at 30 June 2020). Over the two-year hold period, this partial realisation delivered in ZAR a money back multiple of 1.6x and an IRR of 27%.

Post the transaction, Ethos Capital will retain an aggregate stake of 8.89% in Channel VAS with a valuation (based on the transaction value) of $31.7 million. The proceeds of the sale will be used to repay existing borrowings in Ethos Capital which will provide additional flexibility to execute on its strategies to enhance shareholder value.

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