Buses en route to La Con­corde

Business Day - - COMPANIES - Ann Crotty Writer at Large crottya@bdlive.co.za

Share­hold­ers of La Con­corde, for­merly KWV, will be get­ting buses to re­place the brandy as­sets that were sold to Vi­vian Imer­man’s Vis­ari a year ago for R1.5bn.

Hosken Con­sol­i­dated In­vest­ments (HCI), the hold­ing com­pany for Niveus In­vest­ments, which holds 58% of La Con­corde, is sell­ing Golden Ar­row to La Con­corde in a com­pli­cated deal that val­ues the bus busi­ness at R1.8bn. HCI will take shares in ex­change for the bus as­sets, which will re­sult in it hav­ing a 60% stake in La Con­corde whose other as­sets in­clude R1.2bn cash, her­itage prop­er­ties and valu­able art work.

When the Golden Ar­row ac­qui­si­tion is com­pleted La Con­corde, through a newly cre­ated com­pany, Newco, will de­clare a div­i­dend of up to R1.2bn. HCI will re­ceive 60% of this div­i­dend.

La Con­corde mi­nor­ity share­hold­ers did fear HCI would in­ject its coal as­sets into the com­pany to re­place the liquor op­er­a­tions sold to Vis­ari.

“The bus busi­ness is bet­ter than the coal busi­ness,” said one re­signed share­holder.

Golden Ar­row is the ma­jor pub­lic trans­port bus op­er­a­tor in the Cape metropole.

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