Time for degeared Super Group to accelerate?
With a sleeker and more derisked portfolio, the company can now focus on Africa’s underserved fleet and logistics markets
With all suspensive conditions now cleared, Super Group’s R7.5bn sale of its 53.6% stake in Australian fleet management firm SG Fleet Group is on the brink of completion. For a company with a market cap still below R10bn, the deal isn’t just significant — it’s transformative. The price tag implies an earnings multiple north of 15 for an asset that contributed only 40% of group earnings. Simply put, it was an offer too good to refuse.
The deal ticks three major boxes. First, it wipes out R2bn in debt, bringing the group’s net debt to earnings before interest, tax, depreciation and amortisation ratio from a stretched three times down to a much more manageable 0.77 times. Second, it returns a chunky R5.5bn — or R16.30 a share — to shareholders via a special dividend. And third, it positions the remaining business on an attractive valuation. For corporate investors who aren’t liable for dividend tax, the ex-div share price implies an entry point of just R12.70 a share for the con...
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