Transaction Capital announced that it will increase its shareholding in WeBuyCars to 74.9%.
This is up from the 49.9% which the company purchased in September 2020.
“The remaining 25.1% of the shares in WeBuyCars will be held by the family trusts of the founding shareholders, Faan and Dirk van der Walt,” said Transaction Capital.
Transaction Capital added that the latest investment in WeBuyCars is subject to Competition Commission approval.
Big benefits
“The group expects the additional investment of 25% in WeBuyCars… to be immediately value and earnings accretive,” said the company.
“Once the conditions precedent are met and the proposed transaction takes effect, Transaction Capital will be able to consolidate a greater proportion of WeBuyCars’ high-growth earnings.”
According to recent financial results from Transaction Capital, WeBuyCars buys an average of 7,250 vehicles per month – and sells an average of 6,925 vehicles per month.
In the company’s H1 2021 period, WeBuyCars produced R4.68 billion in revenue – with a headline earnings figure of R257 million.
Transaction Capital said at the time of its results being released that it planned to increase its stake in WeBuyCars, and would launch more used-car “supermarkets” in South Africa.
This includes a new vehicle supermarket opening in Gauteng in June, and three more vehicle supermarkets opening in the next 18 months across the country.
Transaction Capital’s CEO David Hurwitz concluded: “Should the proposed transaction to acquire control of WeBuyCars obtain regulatory approval, the exceptional growth prospects of this business will accelerate and support a sustainably higher growth trajectory for Transaction Capital.”
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