Christo Wiese’s industrial holding company Invicta is selling four businesses for about R607m to pay down its most expensive debt.
Invicta said in November it had net interest-bearing debt of about R2.2bn, which compares unfavourably with its R682m market capitalisation. It had opted not to pay an interim dividend for its six months to end-September, citing its debt levels. The group will be selling the businesses for a cash consideration equal to the tangible net asset value of about R507m, which excludes their interest-bearing debt, as well as an additional $6m for goodwill.Landboupart, which distributes replacement spare parts for the agricultural and industrial markets; and Northmec, a supplier of farming equipment in SA.
It is also selling CSE, which imports and distributes construction, earthmoving and turf-related machinery; as well as NHSA, which distributes spare parts for brands such as Fiat, Ford, Braud, Carraro and NewPart. “We are pleased to announce this transaction as it allows Invicta to apply the disposal consideration to reduce the group’s most expensive debt, thereby realigning its funding structure and enabling the company to focus on other strategic initiatives and its core operations,” said CEO Steven Joffe.
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