Deneb hav­ing fun with R40.5m

The Star Early Edition - - BUSINESS NEWS - Sandile Mchunu

DENEB In­vest­ments in­formed its share­hold­ers that it had en­tered into a sale agree­ment with Main Street Hold­ings to ac­quire a 100 per­cent stake in New Just Fun for a cash con­sid­er­a­tion of R40.5 mil­lion.

Deneb is a di­verse in­vest­ment hold­ing com­pany, con­trolled by in­vest­ment gi­ant Hosken Con­sol­i­dated In­vest­ments (HCI), with in­ter­ests in prop­erty, branded prod­uct dis­tri­bu­tion and man­u­fac­tur­ing.

New Just Fun is a South African toy dis­trib­u­tor hold­ing ex­clu­sive dis­tri­bu­tion rights to some of the world’s lead­ing toy brands.

“Deneb has ex­po­sure to the toy dis­tri­bu­tion in­dus­try, through its in­vest­ment in Prima Toys, and this ac­qui­si­tion im­proves economies of scale,” the group said.

Deneb’s seg­ment, the Prima Group – which com­prises Prima Toys, Prima In­ter­ac­tive, the Em­pire Group and some smaller start-ups – had a very strong year with op­er­at­ing profit up 47 per­cent for the year. It will also house New Just Fun.

Deneb said the ac­qui­si­tion was sub­ject to the ful­fil­ment of cer­tain con­di­tions, which in­clude the ap­proval of both Deneb and Main Street Hold­ings boards and the Com­pe­ti­tion Com­mis­sion ap­proval.

The value of the net as­sets of New Just Fun for the year to March was R24.5m, while turnover was R201m and profit after tax R11.9m.

In Deneb’s re­sults for the year to March, earn­ings a share were up 46 per­cent, head­line earn­ings a share in­creased by 22 per­cent and net as­set value a share up 20 per­cent to 415 cents.

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