Transaction Capital has formed a committee to evaluate the proposed unbundling and listing of all shares of WeBuyCars (WBC) on the Johannesburg Stock Exchange.
“The independent committee will be converted to an independent board for purposes of the Companies Act and the Companies Regulations if the board decides to proceed with the unbundling,” WBC’s majority shareholder noted in a filing with the bourse.
Johannesburg-listed Transaction Capital previously announced its intention to separately list WBC when it released full-year earnings report in December last.
Although WBC delivered on its key performance metrics, its sister concern, SA Taxi, didn’t perform up to the mark and subsequently resulting in negative impact on the broader group, according to the Transaction Capital.
Other objectives of unbundling are to reduce debt level; remove cross-default triggers; eliminate WBC’s put option liability and settle R285 million South African National Taxi Council’s equity cure.
The public listing will change the company’s name from WBC Holdings Proprietary Limited to We Buy Cars Holdings Limited.
Transaction Capital and VDW Holdings own 74.9% and 25.1%, respectively, of WBC, which is a phygital trader of used vehicles with $1.1 billion of revenue pocketed during the financial year to September 2023. It has 15 vehicle supermarkets and 74 buying pods across South Africa.