Sasfin announces proposed delisting, offering shareholders a significant premium to the share price

Sasfin announced today an offer to minority shareholders of R30 per share, a 65% premium to the 30-day VWAP (R18.16), as part of a proposed delisting of the Group. The offer will be funded by major shareholders WIPHOLD and Unitas subscribing for shares in Sasfin Wealth. The Sasfin Wealth management team will also be buying into Sasfin Wealth as part of the envisaged transactions.

Commenting on the announcement, Sasfin Holdings Limited CEO Michael Sassoon said, “These proposed transactions, subject to the relevant shareholder and regulatory approvals, are the next step in our strategic reset announced in March 2023. The aim is to simplify the group by backing our core businesses and ultimately unlock value for stakeholders. The support from our major shareholders and management team is testament to their belief in the future of Sasfin and our strategy.”

As part of the strategic reset, Sasfin Holdings has exited its Specialised Lending and Foreign Exchange businesses and awaits final regulatory approvals to dispose of its Capital Equipment Finance and Commercial Property Finance businesses to African Bank Limited.

WIPHOLD, a leading women owned investment holdings company, who have been invested in the Group since 2017, and Unitas, will each subscribe for an effective 7.5% shareholding in Sasfin Wealth, at an implied valuation of R500 million for Sasfin Wealth. Key executives of Sasfin Wealth, led by CEO Erol Zeki, who have successfully grown the business over many years, will participate in a management buy-in scheme to acquire a 15% interest in Sasfin Wealth.

Commenting on the proposed transactions, WIPHOLD Founder Gloria Serobe said, “WIPHOLD has a long track record in investing in the financial services sector. We want to increase our investment in Sasfin as we believe in the strategy of the business and its ability to deliver value to our shareholders.”

Following the proposed cash subscriptions from WIPHOLD and Unitas, Sasfin Wealth will make an offer to acquire up to 10% in Sasfin Holdings. The offer provides minority shareholders with the option to remain invested or exit at a substantial premium to the current market price. These structural changes enable the proposed delisting of Sasfin Holdings from the JSE.

“The offer to shareholders and proposed delisting will result in a significant value unlock. A delisting is optimal as Sasfin currently has a limited free float. As an unlisted company, Sasfin will be able to more seamlessly execute on its strategic reset, which will include further strategic actions,” concluded Sassoon.

For further information please contact:

Brunswick Group

Iris Sibanda

Mobile: +27 71 680 00236

Email: isibanda@brunswick.co.za

Nick Roodman

Mobile: +27 82 808 8671

Email: nroodman@brunswick.co.za