Rextru takes the plunge in major strategic shift
The company snags a 33.78% stake in SA Water Works in exchange for funding of R81m
Fashion retailer Rex Trueform — which is controlled by a consortium led by empowerment doyen Marcel Golding — looks set for a major strategic shift. On Friday the company — which owns the Queenspark fashion chain as well as properties based in Cape Town’s revamped Salt River precinct — announced it would snag a 33.78% stake in SA Water Works in exchange for funding of R81m. According to a statement sent to shareholders, SA Water Works intends using the funding from Rex Trueform – as well as another R41m provided by co-investor Mergence Investment Managers – to acquire a 73.4% stake in Sembcorp Siza Water. Sembcorp Siza manages a water concession business in the municipal boundaries of the Ilembe district municipality and surrounding areas in Kwazulu-Natal. Diversification Rextru said the company had been looking for opportunities to diversify. “The acquisition of the stake in SA Water Works will allow us commence the process of diversification.” There has been persistent speculation...
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