Labat Africa Limited (“Labat” or ”Labat Africa”) is a local black owned and managed Investment Holding Company, listed on the Venture Capital Market of the Johannesburg Stock Exchange (“JSE”). Labat was founded and incorporated in 1995 by Brian van Rooyen and Victor Labat and listed on the JSE in 1999 as one of the first listed BEE companies. Labat has been a major Government contractor providing consulting and related services since 1995. Labat has since inception successfully implemented many high profile Government assignments.
Major BBBEE Controlled
Over the last 10 years Labat shifted its focus to become a major BBBEE controlled, owned and managed listed investment holding company. It has invested in businesses in various industries. Most of these investments were sold or listed separately.
Over the past twelve months, Arbor Corporate Finance (Pty) Ltd has, in its capacity as advisor to the sellers managed a tender auction sale process that included a number of potential buyers of the Reinhardt Transport Group (Pty) Ltd (“RTG”). At the culmination of that process Labat Africa was offered the opportunity and has now concluded an agreement to acquire 100% ownership of the business and assets of Reinhardt Transport Group (Pty) Ltd. RTG is a seasoned logistics company based in Nigel with operating depots in Rustenburg, Durban, Richards Bay, Komartipoort, Phalaborwa and Maputo.
The proposed transaction is to conclude a 100% acquisition of the existing RTG business for R560 million (2.38x three year average EBITDA per AFS). Labat will acquire 100% of the business for a cash consideration of R560 million. The financing will be structured as follows: R230 million by way of vendor financing and the balance from a private placement of equity with preference given to black economic empowerment investors, Labat shareholders, RTG vendors, and management. Total investment funding for acquisition of the RTG business and working capital amounts to R605 million. The operating business units and assets of the RTG group will be injected directly into the listed entity as operating divisions.