Transaction Capital Explores WeBuyCars’ Separate Listing On The Main Board Of The JSE
Transaction Capital Explores WeBuyCars’ Separate Listing On The Main Board Of The JSE. In December 2023, Transaction Capital, together with the WeBuyCars founders, announced that they are exploring the merits of unbundling Transaction Capital’s shareholding in WeBuyCars, together with its separate listing on the Main Board of the JSE.
Transaction Capital owns majority stakes in three underlying businesses: Mobalyz (SA Taxi and Gomo), WeBuyCars and Nutun. Given SA Taxi’s disappointing performance in 2023 and the negative impact this had on the broader Transaction Capital group, Transaction Capital has undertaken to focus on unlocking shareholder value from its existing portfolio of companies.
WeBuyCars is uniquely positioned in South Africa’s large and extremely relevant second-hand vehicle market, giving it substantial growth potential. In the 2023 financial year, WeBuyCars delivered on key performance metrics including increased volumes and growth in market share. Although earnings were down in the first half of FY2023, the business saw a strong recovery in the second half. This positive momentum has continued into 2024, notwithstanding the adverse market conditions.
The Unbundling, if implemented, will afford shareholders the opportunity to have direct access to a market leading asset. WeBuyCars is differentiated from any other players in the local second-hand vehicle market by its proprietary artificial intelligence (“AI”), data and analytics capabilities which optimise the vehicle and buying selling process and a prominent national footprint with 15 vehicle supermarkets augmented by 74 buying pods. The listing of WeBuyCars, if implemented, will be founder led together with their experienced and longstanding management team.
Transaction Capital is an active investor in and operator of credit-orientated alternative assets managed by experienced entrepreneurial management teams employing a rigorous value-led investment approach to generate risk-adjusted interest returns & capital appreciation whilst delivering social value.
