Long4Life mulls acquisition of Sportsmans Warehouse parent
Holdsport’s share price jumped nearly 7% to R61.50 on Monday morning after Brian Joffe’s recently listed investment vehicle Long4Life said it is considering acquiring the sportswear retail chain.
Long4Life was offering to exchange 10.44 of its shares for every Holdsport share, the companies said in a joint announcement.
Long4Life’s share price rose 5% to R6.40, valuing its offer at R66.62 per Holdsport share.
Holdsport would be Long4Life’s first acquisition since its initial public offering (IPO) on April 7. Bidvest founder Joffe raised R1.9bn by placing shares at R5 each with institutional investors, including Investec, Stanlib and Brimstone.
At R61.50 per share, Holdsport had a market capitalisation of R2.65bn on Monday morning.
Holdsport, whose chains include Sportsmans Warehouse and Outdoor Warehouse, reported sales of R1.8bn and aftertax profit of R191m for the year to end-February.