Joffe’s Long4Life to acquire Sportsmans, Outdoor Warehouse

25th July 2017

By: Samantha Herbst

Creamer Media Deputy Editor

     

Font size: - +

Business mogul Brian Joffe’s new investment holding company, Long4Life, which recently debuted on the JSE, has announced its intention to acquire local cash retailer Holdsport, which trades as Sportsmans Warehouse and Outdoor Warehouse.

With Long4Life’s offer being implemented by way of a scheme of arrangement, Holdsport shareholders can receive 12.10 ordinary shares in Long4Life for each Holdsport share held, or they can receive 11.20 Long4Life shares and R5 in cash for each Holdsport share, subject to a maximum aggregate cash consideration of R204-million. The total cash to be paid out will not exceed this amount and will be funded by Long4Life using its existing cash resources.

The Bidvest and Bidcorp founder described this as a pivotal acquisition for Long4Life as it aligns with the company’s stated investment criteria.

“Holdsport not only adds significantly to the intrinsic value of Long4Life, as well as our overall gearing capacity, but [it will also] prove to be key in establishing and building the Long4Life investment platform in the lifestyle sector,” Joffe said in a statement.

He added: “This acquisition provides Long4Life [with] an entry into the exciting sport and outdoor markets, which we believe have tremendous future growth potential.”

Joffe believes the offer is a compelling proposition for Holdsport shareholders too, as it will help them realise value for their current shareholding and provide them with the opportunity to participate in Long4Life’s growth opportunity.

“This transaction will provide Holdsport with access to Long4Life’s strong balance sheet, providing appetite and capacity to grow both acquisitively and organically, [enabling] the company access to our management team’s proven deal-making expertise,” said Joffe.

Once all the conditions precedent to the transaction are met, Holdsport’s JSE listing will be terminated and it will become a wholly owned subsidiary of Long4Life.

The scheme of arrangement is subject to the normal conditions precedent for a transaction of this nature, including the necessary regulatory approvals and/or consents from the JSE, the Takeover Regulation Panel, and the South African Competition Authorities. It is also conditional on Holdsport and Long4Life shareholder resolution approvals.

The transaction is expected to close in the third quarter of 2017.

Edited by Creamer Media Reporter

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION