Lionshare Empowered Partners, part of the Lionshare Group, has recorded two key transactions totalling R1.6 billion.
In the first transaction, Lionshare Empowered Partners partnered with the Buffet Consortium to acquire a R502 million service station property portfolio (with a lease-back) from the shareholders of The Fuel Company (TFC), majority owned by Kaap Agri, the listed agricultural services provider and retailer.
Lionshare Empowered Partners and the Buffet Consortium have bold plans to grow the portfolio into a leading property owner in the sector by positioning themselves as a trusted long-term partner to oil companies and large convenience retail operators looking for secure operating tenure.
These companies could consider the sale of their service station properties to an empowered entity and benefit not only from the capital realisation, but also from the ownership and/or procurement recognition in terms of their broad-based black economic empowerment scorecard. Their B-BBEE credentials will be their added advantage in a sector that is striving for transformation.
Bonang Mohale, Chairman of Lionshare Empowered Partners, said: “Our rationale for the partnership with the Buffet Consortium was largely underpinned by their partnership investment ethos and track record. The Buffet Consortium, together with its partners, represents a substantial privately held property and private equity investor in South Africa. At Lionshare Empowered Partners, our mission is to add value to all who touch our business. By investing into the convenience fuel retail sector, we will add significant value to oil companies and operators who wish to release capital through a sale and leaseback transaction with a trusted long-term landlord partner.”
In a second transaction, valued at R1.1 billion, the Lionshare Group will participate, as shareholder in TFC, in a transaction whereby TFC acquires PEG Retail Holdings. PEG Retail Holdings is a significant operator in the convenience fuel retail sector with 41 service stations situated throughout South Africa, most of which are strategic service stations on national highways.
This acquisition, once all the conditions precedent have been fulfilled, will transform TFC into a significant diversified retail fuel operator, also making it the leading B-BBEE retail fuel operator in South Africa.
Ike Cha, CEO of the Lionshare Group, said: “The Lionshare Group is proud to be part of these two transformative and value-adding transactions in the fuel retail industry. They are key milestones in a continuous entrepreneurial journey, anchored in partnerships that began humbly in 2005, but which has ambitious goals. We aim to play a large role in the transformation of South African society, adding value to all stakeholders, and ultimately creating a lasting positive impact.”