PEPKOR’S disposal of The Building Company (TBC) to Cashbuild has been terminated following the Competition Commission’s recommended prohibition of the transaction.
“As a result of Pepkor and Cashbuild not being able to reach agreement on an extension to the Long Stop Date, the parties have agreed to terminate the transaction,” a statement said.
Pepkor said TBC had performed well and had made progress to restructure and consolidate the business, while improving its strategic alignment, performance and profitability.
“While the disposal of TBC would have enabled Pepkor to streamline its portfolio of businesses to focus on its core business of discount and value retail, Pepkor believes this outcome to be in the best interest of value creation for Pepkor shareholders and note-holders. The group will consider future opportunities to unlock value as these may arise.”