Long4Life is a shot in the arm for Holdsport
Investment company’s purchase offer in July helps boost the share price of specialist sports retailer
Holdsport’s share price has raced ahead in the past year, climbing 12%. This puts the company way ahead of the general retailers’ index, which has declined by 18% in the same time frame. While Holdsport has generally held up better than most of its retail peers in the face of a depressed economy, the rally in the share price was sparked by investment firm Long4Life’s decision to make a bid to acquire the company in July. The offer came despite a muted performance by the specialist retailer in the year to February. Holdsport reported a 5.8% rise in sales, but a fall in profit of 11.4%, to R273.7m. Chief financial officer Cobus Loubser said on Thursday a tie-up with Long4Life would provide Holdsport with access to Long4Life’s balance sheet, producing appetite and capacity for growth both acquisitively and organically, and access to its management team with proven deal-making expertise. "Holdsport has always focused on achieving a high return on funds invested," said Loubser. "We have ...
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