Empowered investment holding company’s R1.6 billion expansion into the convenience fuel retail sector.
Investment holding company Lionshare Empowered Partners, part of the Lionshare Group, recently recorded two key transactions totalling R1.6 billion.
Munashe Jani, head of finance for Lionshare Group, said:
“The first transaction entails Lionshare Empowered Partners partnering with the Buffet Consortium to acquire a R502 million service station property portfolio (with a lease-back) from the shareholders of The Fuel Company (TFC).”
TFC is majority-owned by listed agricultural services provider and retailer Kaap Agri.
The second transaction, valued at R1.1 billion, entails the Lionshare Group participating as shareholder in TFC, in a transaction whereby TFC acquires PEG Retail Holdings. PEG Retail operates in the convenience fuel retail sector and has 41 service stations, many on national highways, across the country.
This acquisition, once all the conditions precedent have been fulfilled, will transform TFC into a significant, diversified retail fuel operator, also making it the leading B-BBEE retail fuel operator in South Africa.
“The intention is to combine TFC’s existing portfolio of 42 petrol stations with the 41 newly acquired petrol stations and then first to rationalise the 83 stations before using TFC’s majority black-owned status to acquire new stations,” Munashe explained.
Ike Cha, CEO of the Lionshare Group, added, “The Lionshare Group is proud to be part of these two transformative and value-adding transactions in the fuel retail industry. They are key milestones in a continuous entrepreneurial journey, anchored in partnerships that began humbly in 2005, but which has ambitious goals. We aim to play a large role in the transformation of South African society, adding value to all stakeholders, and ultimately creating a lasting positive impact.”
In future, Lionshare Empowered Partners will consider bolt-on acquisitions to grow the service station property portfolio.
In addition, to contribute towards job creation and economic growth, Lionshare Empowered Partners is actively looking to make further acquisitions in agriculture, integrated energy, manufacturing, services and impact investments.
