Bidvest Group Secures EUR 750M Agreement to Boost Subsidiaries’ Growth

Bidvest Group
  • Bidvest Group secures EUR 750 million facilities agreement to support related companies.
  • The resolution was passed during the annual general meeting, in accordance with Section 45 of the Companies Act of 2008.
  • Guarantees and suretyships are issued by Bidvest to meet the financial needs of subsidiary companies.

Bidvest Group Limited announced today that it has successfully obtained a facilities agreement worth EUR 750 million. The agreement aims to provide financial assistance to its related companies and support their growth and development initiatives.

The resolution to authorize the provision of financial assistance was approved by Bidvest shareholders during the annual general meeting held on 25th November 2022. This move falls in line with Section 45 of the Companies Act of 2008, which requires written notice to shareholders when the value of the financial assistance, along with any previous resolutions in the same financial year, exceeds one-tenth of 1% of the company’s net worth at the time of the resolution.

The board of Bidvest has granted the Company the role of guarantor in the facilities agreement, officially referred to as the “Facilities Agreement.” The agreement involves several key parties, including the Lenders and The Bidvest Group (UK) PLC as the borrower. Notable financial institutions, such as Citibank, N.A., London Branch, and The Standard Bank of South Africa Limited, have played instrumental roles in arranging the EUR 750 million facilities agreement. Importantly, this guarantee replaces and supersedes a previous guarantee that amounted to GBP 460 million.

Bidvest has been strategically issuing guarantees and suretyships to third parties in order to meet the financial needs of its subsidiary companies. These guarantees and suretyships enable the provision of finance and other facilities to support the growth and operations of these subsidiaries.

The board of Bidvest assures shareholders that the Company has thoroughly assessed its foreseeable financial circumstances and is confident that it will satisfy the solvency and liquidity test as stipulated in Section 4 of the Act. Furthermore, the board has confirmed that the terms under which the financial assistance is provided are fair and reasonable to the Company.

By securing the EUR 750 million facilities agreement, Bidvest Group demonstrates its commitment to supporting its subsidiary companies and ensuring their long-term financial stability and growth. This move further solidifies Bidvest’s position as a leading player in the South African business landscape.

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