A few months after its inaugural JSE listing, newcomer Long4Life has set its sights on fellow JSE-listed Holdsport, proposing a potential acquisition on a share exchange basis.
The share price of Holdsport rose nearly 7% and Long4Life nearly 5% following the announcement, on Monday morning, that the Brian Joffe-led Long4Life had submitted a nonbinding expression of interest to acquire the sport, leisure and recreational merchandise cash retailer and wholesaler.
The lifestyle investment company, in one of its first strategic moves since its inception and listing earlier this year, proposed acquiring the entire issued share capital of Holdsport in a share for share exchange at a ratio of 10.44 Long4Life shares for every one Holdsport ordinary share.
Both companies issued a cautionary on Monday pending the advancement of the nonbinding deal.
Holdsport boasts a network of 39 Sportsmans Warehouse and 24 Outdoor Warehouse stores and holds strategic investments in Performance Brands and Second Skins, which supplies technical apparel to the sporting and outdoor industry under the First Ascent, Capestorm, Second Skins and African Nature brands.
Long4Life’s strategy focuses on medium- to long-term investments in companies within the lifestyle sectors, including those in the beauty, outdoor and sport sectors, as well as retirement villages and restaurants, besides others, with a number of opportunities already identified.
At the time of listing in April, Long4Life had been in discussions with the shareholders of Sorbet to acquire the entire issued share capital for a consideration not exceeding R130-million, settled in cash and shares at the issue price of R5 a share.