Investment holding company Transaction Capital says all the conditions for the unbundling of used car dealer WeBuyCars have been met and the private listing will go ahead as expected.
WeBuyCars sells 12,000-13,000 used cars a month across SA.
Before listing it planned to issue new shares worth R760m, the private placement of shares of R500m with Stockdale Street Investment Partnership V (which invests some of the Oppenheimer’s interests), and Ellvest, linked to the Ellerine family, and a pre-listing of R750m worth of shares.
All these actions have been concluded.
WeBuyCars shares will begin trading on the JSE on Thursday April 11.
Some of the money that Transaction Capital has raised is from WeBuyCars unbundling will be used to repay debt at a holding company level and remove the default agreement that makes the holding company liable for debt if another of its subsidiaries SA Taxi defaults.
SA Taxi, which finances minibuses, is in severe financial trouble. With the new listing, WeBuyCars will leave Transaction Capital’s debt issues behind it.
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