Afrirent Acquires A Majority Stake In High Street Auction
Afrirent Acquires A Majority Stake In High Street Auction. Afrirent Holdings, a 100% black-owned and managed mobility, energy, leisure & gaming group announced that it has acquired a 51% stake in High Street Auctions for an undisclosed amount as part of its diversification and expansion strategy.
Senzo Tsabendze, Executive Chairman of Afrirent Holdings said, “We are very excited about our investment into High Street Auctions. They are a quality business with a demonstrable track record of success, and we believe they will add immense value to our business and long-term value creation. This is a strategic acquisition and part of our long-term strategy to diversify into other sectors of the South African economy that are complementary to our business and High Street is a perfect fit for that. Importantly, we want to create a channel through which to dispose of our fleet when they return from clients.”
On a monthly basis, roughly 150 vehicles are returned from clients due to contracts coming to an end or as fleet is replenished. The acquisition will enable the Group to participate in the whole value chain and extract maximum value in the disposal of the assets post their lifespan with clients. As a majority shareholder, Afrirent will boost High Street Auctions BBBEE credentials and position the business as a significant player in disposing of assets for government entities and municipalities, building on High Street Auctions’ already impressive portfolio of work with the likes of the City of Tshwane and City of Cape Town.
Expansion plans for High Street Auctions include opening offices in the remaining six provinces of SA in which it doesn’t currently have a physical footprint, expansion into the SADC region, and adding a new yellow metal disposal department within the business.
Greg Dart, Director at High Street Auctions said, “This partnership represents an exciting new chapter in the evolution of the business. There is also a wonderful alignment with the corporate culture of our new partners, an essential dynamic when considering such a transaction. For 14 years High Street Auctions has led the property auction market in South Africa, knocking down some of the most valuable real estate in the country for both listed and unlisted clients.”
“The new shareholder composition and operational framework opens doors to move into strategic new auction markets. The first will be the fleet disposal sector, where Afrirent’s dominance will give High Street an immediate leading edge with this new business division. It was our dominance in property auctions that initially facilitated this merger and acquisition process, and we believe that the company with go from strength to strength in the African market as part of Afrirent Holdings.High Street Auction, given the benefit of its new BBBEE profile, will also naturally give significant focus to the opportunities available in the public sector and bid on government tenders when they are published.”
