JOHANNESBURG – Tiles manufacturer Italtile, the owner of the CTM and Top T brands, boosted its Broad Based-Black Economic Empowerment (BBBEE) credentials after it partnered with Yard Investment Holdings, which has subscribed for 26 400 000 ordinary shares in Italtile for a cash subscription amount of R312 million.
Yard is a South African-based, black-owned and active private equity investment firm managed by Badian Maasdorp. Its shareholders comprise Leslie Maasdorp, Yogesh Narsing, Badian Maasdorp and Mikhail Maasdorp.
The BEE Transaction is expected to enhance Italtile’s BEE ownership credentials for a period of at least three years.
The transaction is being carried through a special purpose vehicle company, Yard SPV, which is to house the subscription shares acquired pursuant to the BEE transaction for the benefit of Yard shareholders.
“Italtile is pleased to be establishing this relationship with Yard, which brings with it international commercial experience relevant to the company’s business,” Italtile said yesterday.
The BEE transaction has been implemented by way of a general issue of shares for cash.
Yard’s managing director, Badian Maasdorp, said in an interview that the company considered itself a long-term patient investor.
“This presents us a well-established, well-run company with a strong management team. That is what we see as a quality investment. Of course, we have a small percentage of shares in the company and we might not make an immediate contribution, but we are confident we will in time,” Maasdorp said.
Italtile declared a 23 cents gross special dividend to sweeten the transaction for other shareholders.
Italtile, which celebrates its 50th anniversary this year, shot the lights out in its performance for six months to December, despite a subdued economy as it increased turnover by 23 percent to R4.3 billion, while trading profit was up 35 percent to R968m.