Universal Partners (UP), the JSE-listed investment firm that targets companies with growth potential in the UK and Europe in particular, has sold its 22% interest in the UK-based electric motor manufacturer YASA to Daimler UK in a £42.8m (R878m) deal.
Daimler UK is a subsidiary of Mercedes-Benz, which will assume 100% of YASA.
“The YASA investment has provided excellent returns for UPL’s [Universal Partners Ltd] shareholders. The transaction demonstrates UPL’s ability to be a value-adding, reliable partner that helps businesses to grow exponentially while delivering healthy returns for all its shareholders,” CEO Pierre Joubert said.
After acquiring an initial stake about four years ago, UP went on to invest R293m in YASA, which manufactures lightweight, high-performance Axial Flux electric motors for the automotive industry.
YASA supplies supercar brands such as Mercedes AMG, Mercedes-Benz, Ferrari, McLaren and Koenigsegg.
UP, which has its primary listing in Mauritius and a secondary listing on the JSE’s AltX, has stakes in five other varied businesses, helping it to reduce concentration risks.
It has an interest in Dentex, the UK’s second-largest private dental practice group, which is recovering from the national shutdown in early 2020 to control the spread of Covid-19.
YASA was not as severely affected as its main focus is on engineering development projects.
Joubert said he was confident that Mercedes-Benz will build on the success achieved by YASA and take its impressive technology to greater heights.
In an effort to reduce greenhouse emissions, EU countries and other nations are looking to phase out air-polluting internal combustion engines in favour of environmentally friendly alternatives such as electric-powered vehicles. This should be beneficial to YASA.
In July, the EU proposed a ban on the sale of new petrol and diesel-powered vehicles by 2035, implying that vehicle manufacturers will have to transition to electric-powered cars from internal combustion engine vehicles.
Electric vehicles (EVs) are expected to account for 11% of vehicles sold globally within six years, with EVs projected to surpass sales of fuel-powered cars by 2040.
UP also has a strategic stake in SC Lowy, the high-yield bond and distressed debt specialist, which has operations in Europe, Asia and the Middle East. It also invests in JSA Services, a provider of professional advisory and outsourcing services to the UK’s growing flexible workforce.
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