WDB Investment Holdings finalises a landmark empowerment deal with Tsebo Solutions Group (Pty) Limited

WDB Investment Holdings (Pty) Limited (WDBIH) has finalised the acquisition of a 25% stake in Tsebo Solutions Group (Pty) Limited (TSG), supported by a funding package provided by Standard Bank of South Africa, a key funding partner to WDBIH.

The transaction marks one of the largest acquisitions concluded by WDBIH to date and establishes them as significant shareholders in TSG together with well-known international investors, Wendel and Capital Group Private Markets (shareholders at the Tsebo Holding level) and the Tsebo Empowerment Trust. WDBIH will hold two board seats on the TSG board and actively support the future growth of the asset as it pursues its strategy of becoming a leading Facilities Solutions provider across the African continent.

Tsebo are the largest provider of facilities services in Africa. Through their 37,000 staff and 41 offices in 23 countries Tsebo provides local and multinational clients with a full range of “non- core” services that can be operated individually, or in an integrated package. Tsebo has a proud record of empowering communities, developing its employees, maintaining a broad- based shareholding and enhancing the African agenda, evidenced by its Level 1 empowerment rating within South Africa. Tsebo enables its clients to maintain focus on their own core operations without the distraction and cost of maintaining their business infrastructure. Their clients benefit through reduced risk, cost and complexity, with improved transparency and productivity across their African portfolio.

Clive Smith, Chief Executive Officer of Tsebo, said:

“We are honoured to have welcomed WDBIH to the Tsebo family. Tsebo has a history of enduring partnerships with women’s investment groups notably Nozala and Lereko, and they are a vital component of our company leadership dynamic. WDBIH will bring fresh insights to our strategy and accelerate the value Tsebo can bring to its markets and stakeholders in the years to come”.

Established in 1996, WDBIH is a women-founded, led and operated investment holding company, which manages a portfolio worth approximately R3billion currently and seeks to be a strategic and transformational investor in both listed and unlisted companies. WDBIH’s portfolio investments currently include FirstRand, Discovery, Bidvest Group, Bidcorp Group, Ascendis Health, Woolworths Holdings and Assupol Life. Some of its key objectives include playing an active and strategic role in its investments and ensuring the financial sustainability of the WDB Trust. The WDB Trust is mandated to bring about both economic upliftment and social advancement of poor rural women in South Africa.

 Faith Khanyile, Chief Executive Officer of WDBIH, said:

“We are excited to team up with partners that share our values and vision for the African continent, whilst also contributing significantly to the transformational objectives in this country. We believe Tsebo is well positioned to continue its robust growth across Africa and we look forward to working with our new partners to create long term value.”

Wendel is a leading European listed investment firm, which invests internationally, in companies that are leaders in their field, such as Bureau Veritas, Saint-Gobain, Cromology, Stahl, IHS, Constantia Flexibles and Allied Universal. Wendel plays an active role in these companies, implementing long-term development strategies, which involve boosting growth and margins of companies so as to enhance their leading market positions.

Capital Group Private Markets is an experienced leader in emerging markets private equity and a pioneer of the global approach to building a diversified portfolio of the most compelling risk-adjusted investments across global emerging markets in the funds it manages. Capital Group Private Markets has historically backed strong management teams and market-leading franchises through selective access to the most compelling emerging markets its focused regions and sectors.