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Durban - Deneb Investments informed its shareholders that it had entered into a sale agreement with Main Street Holdings to acquire a 100 percent stake in New Just Fun for a cash consideration of R40.5 million.

Deneb is a diverse investment holding company, controlled by investment giant Hosken Consolidated Investments (HCI), with interests in property, branded product distribution and manufacturing.

New Just Fun is a South African toy distributor holding exclusive distribution rights to some of the world’s leading toy brands.

“Deneb has exposure to the toy distribution industry, through its investment in Prima Toys, and this acquisition improves economies of scale,” the group said.

Deneb’s segment, the Prima Group - which comprises Prima Toys, Prima Interactive, the Empire Group and some smaller start-ups - had a very strong year with operating profit up 47 percent for the year. It will also house New Just Fun.

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Deneb said the acquisition was subject to the fulfilment of certain conditions, which include the approval of both Deneb and Main Street Holdings boards and the Competition Commission approval.

The value of the net assets of New Just Fun for the year to March was R24.5m, while turnover was R201m and profit after tax R11.9m.

In Deneb’s results for the year to March, earnings a share were up 46 percent, headline earnings a share increased by 22 percent and net asset value a share up 20 percent to 415 cents.

BUSINESS REPORT ONLINE