South African billionaire Jannie Mouton, through his Jannie Mouton Foundation, has launched a R7.2 billion scheme to acquire and delist private school giant Curro Holdings, in a move that could transform the company into a non-profit focused on expanding access to quality education.
The proposed deal would see Curro shareholders receive a substantial premium of 60% to the company’s closing price on August 25, through a mixed payment of cash, Capitec shares, and PSG Financial Services shares, as per BusinessTech. The transaction, which values Curro at approximately R7.2 billion, would result in the delisting of Curro from the Johannesburg Stock Exchange after more than a decade as a public company.
The offer, structured as a Scheme of Arrangement, provides shareholders with consideration equivalent to R13 per share, consisting of approximately 6.6% cash, 79.7% in Capitec shares, and 13.7% in PSG Financial Services shares.
The foundation, already a 3.36% shareholder in Curro, emphasised that this represents a game-changing R7.2 billion donation in quality education that could potentially be ‘the largest philanthropic contribution South Africa has ever seen’.
Cape {town} Etc Discount Alert!
Unlock Cape Town’s best experiences for half the price! From unforgettable adventures to hidden gems and mouthwatering restaurants, these limited-time deals won’t last long. Snag your discount before they’re gone!
Following this announcement, Curro’s share price surged over 50% on Wednesday, 27 August (Daily Investor), reflecting investor enthusiasm for the premium offer.
Mouton, a renowned businessman who was instrumental in creating Capitec Bank, PSG Group, and Curro itself, stated that it will provide shareholders with significant value.
‘Over time, this will open the door for thousands more children to attend Curro schools through bursaries, broadening access to excellent education,’ he said.
The foundation’s vision is to position Curro as ‘an ever-evolving independent education institution’ that reinvests its returns into building more schools, expanding facilities, and offering bursaries.
Meanwhile, Curro CEO Cobus Loubser confirmed that the independent board would evaluate the offer, highlighting that the foundation is not a competitor of Curro.
Be the first to know – Join our WhatsApp Channel for content worth tapping into! Click here to join!
Also read:
Picture: Getty Images
