Pepkor to sell building materials unit to Capitalworks
Pepkor announced it is selling its entire stake in The Building Company (TBCo) to Capitalworks Private Equity.
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Pepkor, a listed South African retail group, announced it is selling its entire stake in The Building Company (TBCo) to Capitalworks Private Equity and some of TBCo's management team for approximately R1.2 billion ($62.4 million). TBCo, a Pepkor subsidiary, owns several brands such as Buco, Timbercity, and Tiletoria. The deal is pending regulatory approval.
The total consideration payable on closing of the proposed transaction will be c. R1.2 billion subject to an escalation rate of 8.5% per annum from 1 October 2023 until the proposed transaction’s closing date.
Pursuant to the required approvals and conclusion of the proposed transaction, 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.
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