Propinvest & MBO

Two’s Company Propinvest CC (Pvt) Ltd Acquisition, MBO & Privatisation

As earlier noted CFIT, in partnering with smaller BEE entrepreneurs, provides capital and management support to emerging and established entrepreneurs with profitable business propositions.

Our partnering management philosophy, where we believe we have the opportunity to further advance growth, alongside exceptional management teams, has stood the company in good stead as we are now being recommended by many legal firms to act in these roles.

CFIT’s cash injections into the Two (Pty) Ltd transaction and the additional advisory services offered in this private sector and niche services’ deal allowed the business to take advantage of its management, the acquisitive growth strategy and other business opportunities. Besides also injecting its own expertise in this deal, CFIT was, contracted, amongst others to:

  • Prepare the company for its conversion to a “Pty Ltd” company
  • To raise further capital from the open markets and
  • To prepare the company for its conversion from a privately – held company to a publicly listed one on an African continent stock exchange (outside of the South Africa’s JSE).

Again here, CFIT’s role was that of Transaction Advisor. In addition, because this transaction was then projected to run over 3 years (from privatisation to public listing), CFIT has been retained to also act as Programme Manager for the deal and to coordinate all legal, company secretarial, advisory and auditing.

Because the capital raised was from the UK Venture capital partners, the South African BB- BEE partners and the Namibian owners, this deal was in excess of R60 million Rand for Phase 1. Phase 2 which is the actualisation of the listing was many fold larger than Phase 1.