Transaction Capital said the board has decided to pursue unbundling WeBuyCars with a separate listing on the Johannesburg Stock Exchange (JSE).
In December 2023, Transaction Capital CEO Jonathan Jawno revealed the possibility of a separate WeBuyCars JSE listing during the company’s results presentation.
He said they are exploring the unbundling in partnership with WeBuyCars founders Faan and Dirk van der Walt.
“We are exploring the merits of unbundling Transaction Capital’s shareholding in WeBuyCars with its subsequent listing on the main board of the JSE,” Jawno said.
WeBuyCars is the most valuable asset in Transaction Capital’s stable and a household name in the second-hand car market.
Jawno said it is uniquely positioned in the South African motoring sector and has tremendous technological capabilities, setting it apart from its competitors.
Transaction Capital has now announced that the board has, in principle, resolved to pursue the WeBuyCars unbundling.
If approved, it would be implemented through a pro rata distribution of the WeBuyCars shares held by Transaction Capital on the relevant distribution date.
All the WeBuyCars shares will be simultaneously listed on the main board of the Johannesburg Stock Exchange.
Transaction Capital said the board has made significant progress in engaging with regulators and some stakeholders concerning the unbundling and listing.
“Following the release of this announcement, the board will engage on a more formal basis with other key stakeholders in the operating context of the group,” it said.