Transaction Capital Limited has announced a significant move that will unlock value for its shareholders. This move involves the unbundling of WeBuyCars and its separate listing on the Johannesburg Stock Exchange (JSE). It’s a strategic decision aimed at enhancing shareholder value and focusing on the growth potential of both entities.
Background
Transaction Capital Limited, a prominent player in the financial services sector in South Africa, is known for its innovative solutions and strategic investments. One of its notable investments is WeBuyCars, a leading player in the automotive retail sector. The decision to unbundle WeBuyCars reflects Transaction Capital’s commitment to creating value for its shareholders.
Key Details of the Unbundling
The unbundling process involves several key details that shareholders need to be aware of. These include the share issue of R760 million, private placement of WBC shares worth R500 million, and a pre-listing capital raise of up to R750 million. These initiatives are designed to strengthen the financial position of WeBuyCars and facilitate its separate listing on the JSE.
Fulfilment of Unbundling Conditions
Transaction Capital has confirmed that all conditions for the unbundling have been met, making the process unconditional. This includes receiving a compliance certificate from the Takeover Regulation Panel (TRP) in accordance with relevant legal provisions.
Salient Dates and Times
Shareholders need to take note of the salient dates and times related to the listing and unbundling process. These dates include the last day to trade shares, ex-right dates, listing dates, record date, and completion date. It’s important for shareholders to stay informed and adhere to these timelines to participate in the unbundling effectively.
Below is a table summarizing the salient dates and times for the listing and unbundling process:
| Event | Date |
|---|---|
| Last day to trade shares | April 10, 2024 |
| Shares trade ex-right to WBC Distribution Shares | April 11, 2024 |
| WBC Shares listed on the JSE | April 11, 2024 |
| Announcement of base costs for taxation | April 12, 2024 |
| Announcement of fractional entitlements | April 12, 2024 |
| Unbundling Record Date | April 15, 2024 |
| Unbundling Completion Date | April 16, 2024 |
Final Distribution Ratio
The distribution ratio determines how many WeBuyCars shares shareholders will receive for every Transaction Capital share held. The ratio stands at 0.32678 WBC shares for every 1 Transaction Capital share. This ratio reflects the strategic positioning of Transaction Capital’s shareholding in WeBuyCars post-unbundling.
Responsibility Statement
The board of Transaction Capital, including the Independent Board, takes full responsibility for the accuracy of the information provided in this announcement. They certify that the information is true and complies with legal requirements. Shareholders can rely on the transparency and diligence of the board in executing this strategic initiative.
Conclusion
Transaction Capital’s unbundling of WeBuyCars marks a significant milestone in the company’s growth trajectory. By unlocking value and focusing on separate listings, Transaction Capital is positioning itself for continued success in the financial services and automotive retail sectors. Shareholders should stay informed about the process and take advantage of the opportunities presented by this strategic move.
