Dragan Šolak recently bought an 80% stake in Southampton FC for £100m from Gao Jisheng and the transaction gave Southampton FC an enterprise value of +-£230m including debt.
Who owns (major shareholders) some of the EPL and PSL teams?
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Gao Jisheng paid £210m for 80% of Southampton in 2017.
Gao hasn't invested any money into the club as he wants the club to be self sufficient (“I am not treating Southampton as a pig to be fattened and sold".
Club has generated £63m from operations and £62m from external loans.
To weather the Covid-19 storm, Southampton got access to a very expensive term loan of £78.8m provided by MSD Partners (football lender) which replaced a working capital facility.
End result was a cash balance of £40m with gross debt rising from £31.8m to £91.3m.
How expensive is the term loan?
Notes to the accounts indicate that the £78.8 million loan is repayable in 2025 and has an annual interest rate of 9.14% which is £7.2m annual interest for 3yrs vs the revolving facility which had an annual interest rate of 3.9%.
It is often said that MSD can require clubs to put up considerable assets as security for the loans, including property.
MSD’s Cayman Islands-owned company has a mortgage on St Mary’s stadium (Southampton's stadium), the training ground and the club’s other properties.
Owners of some of the EPL teams.
Arsenal - Stan Kroenke (90%)
Brentford - Matthew Benham
Burnley - ALK Capital (American consortium)
Chelsea - Roman Abramovich
Crystal Palace - Steve Parish, Joshua Harris & David S Blitzer
Everton - Farhad Moshiri (77% stake) & Bill Kenwright.
Brighton and Hove Albion - Tony Bloom
Leeds United - Andrea Radrizanni, 49ers Enterprises
Leicester City - Srivaddhanaprabha family
Liverpool - John W Henry and Tom Werner
Manchester United - Glazer family
Newcastle United has been sold to a consortium led by Saudi Arabia Public Investment Fund - 80%, PCP Capital Partners 10% and RB Sports&Media 10% for £300m
Manchester City - CGF
Norwich City - Delia Smith, Michael Wynn-Jones and Michael Fougler
Tottenham Hotspur - Joe Lewis and Daniel Levy (ENIC International owned by both Joe and Daniel owns 80% of Spurs)
Wolves - Fosun International
Watford - Gino Pozzo
A Czech tycoon by the name of Daniel Kretinsk bought a 27% stake in West Ham United for £160m in 2021, valuing the club at £593m, or £700m including debt.
As Ed Woodward is steps down from his role as Executive Vice-Chairman and being replaced by Richard Arnold effective on 1 Feb 2022, he leaves a lagacy of having taken home £21m in his capacity as chief since 2013 and earned £3.09m in the 20/21 season a low from £3.16m in 19/20.
Who owns some of the DSTV PSL teams?
Amazulu - Sandie Zungu
Baroka FC - Khurishi Mphahlele
Cape Town City FC - John Comitis
Chippa United FC - Chippa Investment Holdings
Golden Arrows - Madlala Family (Mato Madlala is the CEO of PSL)
Maritzburg United FC - Farook Kadodia
Marumo Gallants - Dr Abram Sello
Orlando Pirates - Dr Irvin Khoza
Royal AM FC - Shauwn Mkhize.
Sekhukhune United FC - Simon and Jonas Malatji
Supersport FC - Supersport (MultiChoice)
Swallows FC - David Mogashoa
TS Galaxy - Tim Sukazi
Mamelodi Sundowns - Dr Patrice Motsepe
Stellenbosch FC - Remgro (Johann Rupert) via Stellenbosch Academy of Sport.
Kaizer Moutang almost listed Kaizer Chiefs on the JSE in the late 90s.
The listing never went through and Kaizer sold 40% of its shares to Primedia Group for a rumoured R40m.
Bra Kaizer subsequently bought back the shares 40% shares from Primedia for R70m in 2010.
How did Marumo, TTM and Royal AM come about?
2020, Lawrence Mulaudzi, owner of Tshakhuma Tsha Madzhivhandila (TTM) bought Bidvest Wits for R50m.
Bidvest Wits was 40% owned by Wits University and 60% owned by Bidvest, but Wits sold its stake to Bidvest before the takeover.
In 2021, Dr Abram Sello bought TTM from Lawrence Mulaudzi for R40m and renamed it Marumo Gallants.
Shauwn Mkhize bought the PSL status of Bloemfontein Celtics and opened a back door for Lawrence Mulaudzi and TTM to make a comeback.
August 2021 after Shauwn Mkhize bought Bloemfontein Celtics' PSL status (and rebranded it to Royal AM), Tshakhuma Tsha Madzivhandila Football Club (Lawrence Mulaudzi) then acquired the status of Royal AM in the GladAfrica Championship and rebranded to TTM.
Changing of names is common during the sale of SA teams.
2020, Ajax Amsterdam has sold its 51% stake in Ajax Cape Town to the once minority shareholders - Cape Town Stars (previously held 49%).
The name (Ajax) rights might be lost and Cape Town Stars might need to rename Ajax.
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PSG Group is going on a huge unbundling exercise to unlock value for its shareholders.
Share price of PSG Group has been trading at a significant discount of 30% to the value of its underlying investments.
Naspers and African Rainbow Capital shareholders are envious.
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Trading at a discount to the sum-of-the-parts is common for holding companies.
What 'complicates' things with holding co that have unlisted investments is the difficulty in valuing those unlisted investments.
Valuing listed investments within holding companies is often easier.
When entity trades at discount to its sum-of-the-parts,it means that if investors were to hold individual positions in the holding company’s underlying assets, they would be worth more than holding shares in parent that owns those assets.
Zeder’s board has resolved to unbundle the company's 42.2% shareholding in Kaap Agri to its shareholders in an attempt to unlock value.
Zeder has also received several approaches from 3rd parties interested in acquiring a number of Zeder portfolio investments.
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Zeder invests in the agribusiness industry.
Agribusiness refers to a range of activities and processes involved in modern food and raw material production.
Zeder’s underlying investment portfolio was valued at R5.72bn on 28 February 2021, a decrease from the prior year, mainly due to the substantial special dividend paid following the Pioneer Foods disposal.
Zeder came into existence as the brainchild of PSG Group’s leadership team
All Caltex-branded service stations in South Africa and Botswana are to be rebranded Astron Energy.
Who owns (franchior) Caltex-branded service stations in SA?
Who owns (franchior) Engen service stations?
Is Southern Africa and Shell Refining SA (SAPREF) closing?
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1) Caltex-branded service stations
Astron Energy is South Africa's second largest petroleum network with over 850 Caltex-branded service stations in SA and Botswana.
Astron Energy, a Glencore group company, is a leading supplier of petroleum products in Southern Africa, with a vast network of service stations and is the second-largest petroleum network in the region.
Impala Platinum (Implats) will make a general offer to the shareholders of Royal Bafokeng Platinum (RBPlat) to acquire all the issued ordinary shares in the capital of RBPlat it does not already hold.
[Thread] will cover;
Implats, Northam and
History of Impala and RBPlat.
Let's get some abbreviations out the way.
RBH: Royal Bafokeng Holdings
RBN: Royal Bafokeng Nation
RBPlat: Royal Bafokeng Platinum
SANTACO's bid to acquire Mango Airlines has been rejected.
[Thread] will cover; 1) Mango's business rescue, 2) Relationship between SA Taxi and SANTACO and 3) SANTACO's attempted entrance in the aviation space in 2015 plus some running costs and why bid to acquire Mango failed.
Mango is a state owned company and is a subsidiary of SAA.
Mango commenced business in 2006 as a low-cost domestic airline facilitating business and tourism air travel in South Africa and regionally.
Mango was given a R100m loan plus interest to be paid in 5yrs by SAA.
16 Apr 2021 the board of directors adopted the resolution to place Mango in business rescue in terms of sec 129 of the Act.
Approval from Minister Gordhan
(the Executive Authority) was received on 22 Jul 2021 and on 28 Jul 2021 Mango was placed in voluntary business rescue.