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.