A consortium led by JSE-listed group Altvest says it is still pursuing a purchase of a strategic stake in the commercial rights of the SA Rugby Union (Saru), including that of consecutive world cup champions the Springboks.
Altvest in its annual report published on Monday said its pursuit of an equity stake in the Saru commercial rights was not only commercially promising but also “culturally significant”.
The consortium comprises Altvest Capital, 27four Investment Managers, EasyEquities and RainFin.
Saru, however, told Business Day that it is yet to receive an expression of interest to acquire an interest in its commercial rights. The delay in lodging a formal bid is surprising as Altvest first announced its intentions in December.
Saru confirmed it was still on the hunt for an equity partner. To this end, the organisation had appointed financial advisers to advise members “on all aspects of rugby’s financial sustainability and the role that various forms of investments, including private equity investment or other alternatives, might play”.
The Altvest consortium values the Saru commercial rights at $375m (R7bn), with the consortium seeking to acquire up to 40% of the rights.
Altvest CEO Warren Wheatley, in his letter to shareholders published in the annual report, said the consortium’s bid aligns the sport’s long-term viability with the economic and cultural value of SA rugby.
By providing a structured, transparent and scalable model for investment, Altvest is empowering a wide range of stakeholders to share in SA Rugby’s success.
— Warren Wheatley, Altvest CEO
“The Altvest SA Rugby initiative is more than just a financing vehicle, it is a visionary blueprint for the sport’s future. By providing a structured, transparent and scalable model for investment, Altvest is empowering a wide range of stakeholders to share in SA Rugby’s success,” Wheatley said.
“It simultaneously secures long-term financial stability, global competitiveness and the ongoing expansion of one of SA’s most celebrated cultural assets. For investors seeking diversification, consistent returns, and participation in a globally recognised sports brand, this initiative presents a rare chance to combine financial growth with shared passion.”
To raise the mammoth funding needed to invest in Saru commercial rights, Altvest has said institutions and fixed-income investors would participate through listed debt instruments facilitated by SA debt arrangers.
It said this channel enhanced equity returns, provided stable funding and diversified the capital base with long-term investments suited for institutional mandates.
The Altvest bid rests on four pillars: broadcasting rights, sponsorships and partnerships, merchandising and licensing, and match day revenue.
“Beyond purely financial considerations, this initiative heralds a fundamental shift in how SA rugby is funded,” Wheatley said.
Altvest became interested in Saru’s commercial rights after a proposal from US-private equity firm Ackerley Sports Group (ASG) to buy a 20% stake in the commercial rights fell through.
The ASG proposal failed due to insufficient support from the Sharks, Blue Bulls and Lions, among other unions.
ASG offered $75m to acquire a 20% stake in the commercial rights and gain control over Springbok commercial rights.
The structure of ASG’s offer was its undoing. Under the offer, payment of the $75m would be staggered, with the first tranche of $35m set to be paid on the parties putting pen to paper, and the rest over four years.
But the capital had to be repaid to ASG, though it would have had perpetual rights to the 20% stake in the commercial rights.
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