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BMFI board approves 15% shareholding acquisition in Pembury

28th July 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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Following a due diligence process and a binding share sale and subscription agreement, the Black Management Forum Investment (BMFI) board has approved the acquisition of 57-million shares in Pembury Lifestyle Group (PLG) for R55-million.

BMFI will acquire 37-million existing shares from property vendors of AltX-listed PLG at R1 apiece, totalling R37-million, followed by the subscription of 20-million new shares at 90c apiece for R18-million.

BMFI will hold 15.7% of PLG’s shares in issue.

“I am delighted to have secured a long-term strategic partner in BMFI that shares the vision of providing quality, affordable private education to the market, addressing a very real need for South Africa. The subscription will inject further funds to expand our campuses,” said PLG CEO Andrew McLachlan in a statement on Friday.

The funds, to be paid by month-end, boosted the company’s cash flow, enabling more funds for property acquisitions and planned capital expenditure activities.

The PLG investment is a good fit with our investment focus on education, besides other sectors, as well as our long-term orientation. We are long-term holders with an average investment holding period of 15 years in our current portfolio and are pleased to support PLG fulfil its growth aspirations,” concluded BMFI MD Njabulo Mthembu.

Edited by Creamer Media Reporter

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