Dis-Chem’s founding Saltzman family yesterday announced three major transactions that will substantially reduce their control of the pharmaceutical store chain. Picture: Karen Sandison/African News Agency(ANA)
Dis-Chem’s founding Saltzman family yesterday announced three major transactions that will substantially reduce their control of the pharmaceutical store chain. Picture: Karen Sandison/African News Agency(ANA)

Dis-Chem’s founders to reduce control of chain store

By Edward West Time of article published Aug 25, 2021

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DIS-CHEM’S founding Saltzman family yesterday announced three major transactions that will substantially reduce their control of the pharmaceutical store chain.

The group said the family planned to sell 7.5 percent of their shareholding in the group through its investment vehicle Ivlyn Local Investment Holdings, via an accelerated bookbuild. The divestment involved the sale of 64.51 million Dis-Chem shares.

In addition to the bookbuild, family said it would sell up to 32.25 million Dis-Chem shares, representing 3.75 percent of the share capital, to a select number of senior executives. Included in this group was chief financial officer Rui Morais, who had also been approved by the nomination committee as successor to chief executive Ivan Saltzman.

The management retention scheme would be vendor-financed by the family at no cost to Dis-Chem, and participating management would be subject to a 10-year lock-up.

The final details of the scheme were expected to be released along with the interim results in November.

The Saltzman family also entered into an agreement with a black economic empowerment (BEE) investor consortium, which it did not name, to sell a further 86.47 million Dis-Chem shares, representing 10.05 percent of its share capital, to the BEE consortium.

If the conditions were fulfilled by August 31 and the transaction proceeded, a further announcement would be made.

Following the bookbuild and management retention schemes, the Saltzman family would own about 41.5 percent of Dis-Chem’s share capital.

If the BEE deal becomes unconditional, the Saltzman family’s shareholding would be reduced further to about 31.4 percent.

Ivan Saltzman commented: “We are pleased to announce today’s transactions, which we see as meeting a number of objectives, including the provision of greater liquidity in the trading of DisChem shares and taking proactive steps to incentivise and retain important executives who are key to the delivery of the long-term strategic objectives of our group. Should we succeed in closing the BEE transaction, we will also have introduced high quality BEE shareholders into our business … ”

He said the family had agreed to an extended lock-up on their remaining shareholding.

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