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Johannesburg - Ascendis Health [JSE:ASC] has successfully concluded two separate BBBEE deals to the combined value of R140m with BEE investment partners WDB Investment Holdings (WDBIH) and Senatla Capital.
The structured deals, together with its previous deal concluded with MIC Investment in June this year, as well as the direct investment of WDB will see Ascendis increase its BBBEE ownership up from the current 7% to over 15% over the next three years with combined deals totalling R390m over the last six months.
The agreements were structured through the issuing of shares at a Coast2Coast (C2C) level - a majority shareholder in Ascendis - and not by way of a fresh issue of shares, resulting in zero dilution of Ascendis shares for other shareholders and with costs of the deal borne exclusively by C2C.
WDBIH is a private enterprise which was formed in 1996 with its major beneficiary and shareholder being the WDB Trust, whose beneficiaries are a broad-base of rural women and communities.
To date, WDB has repatriated over R150m to the WDB Trust to fund various development programmes focussing on the social and economic upliftment of rural women and households.
Senatla Capital is a private equity investment manager that is 100% black owned. Senatla Capital has over the past four years accumulated assets under management exceeding R350m and is currently raising additional capital in its second fund.
“We clearly view direct BEE ownership as a prerequisite for responsible and sustainable growth in South Africa, especially for a listed company and as a result we are confident that this transaction will present long-term benefit to all Ascendis shareholders," said Ascendis CEO Dr Karsten Wellner.
"Ascendis intends to increase its BBBEE equity structure with further deals of similar size and structure in the near future.”
