The South African National Taxi Council (SANTACO) has finalised its acquisition of a 25% stake in SA Taxi, a major subsidiary of Transaction Capital.
“Transaction Capital is pleased to advise Shareholders that all conditions precedent to the Transaction have been successfully fulfilled. Accordingly, the Transaction is now unconditional,” Transaction Capital said on Wednesday.
The deal is valued at R1.7 billion.
SANTACO is a national body which represents the interests of its members who are individual minibus taxi operators.
SA Taxi delivers tangible commercial benefits to taxi operators beyond relevant and affordable finance and insurance products.
SA Taxi and SANTACO have engaged over several years to formalise the industry’s participation in revenue streams of the minibus taxi industry value chain and to achieve meaningful and sustainable commercial benefits for industry participants.
Of the R1.7 billion purchase price, about R1.2 billion will be funded jointly by Standard Bank and Futuregrowth Asset Management, with the remainder facilitated by SA Taxi in the form of vendor funding.
SA Taxi will use about R1 billion of the net proceeds of R1.2 billion to settle interest bearing external and shareholder debt, with the remainder retained by SA Taxi to fund growth.