Labat Africa Ltd is a 57% black owned and 34% black women owned Level 2 BBBEE holistic empowered solutions provider.
Labat Africa Limited (“Labat” or ”Labat Africa”) is a local black owned and managed Investment Holding Company, listed on the Venture Capital Market of the Johannesburg Stock Exchange (“JSE”). Labat was founded and incorporated in 1995 by Brian van Rooyen and Victor Labat and listed on the JSE in 1999 as one of the first listed BEE companies. Labat has been a major Government contractor providing consulting and related services since 1995. Labat has since inception successfully implemented many high profile Government assignments.
Labat is an operationally oriented permanent capital vehicle, with a strong track record within South Africa. Labat is currently repositioning the business to be a leading logistics and distribution company operating in South Africa and sub-Saharan Africa.
Throughout its history, Labat has been acquiring oriented purchasing businesses and growing them to a stage where they are mature enough to be sold off at a price that allowsLabat to make a fair return and capital gain on its investment. The following are selected past and current investments:
- Acme/Dales furniture stores Sold R60m
- Labat Traffic Solutions Listed R200m
- Africard – Master/Visa card Sold R40m
- SAMES – Microchip Manufacture Currently owned
- Labat Logistics Currently owned
Labat Africa continues to drive its operations to extract maximum value for its shareholders. Through the repositioning of Labat as a level 2 B-BBEE fully compliant company operating in a climate where there is increased pressure for companies in all industries to comply with the BEE framework instituted by National Government, Labat sees the immediate opportunity to become a major player of “Real Economic Transformation”.
Labat’s focus will be the creation of a major new BEE group with partners from various market sectors. Furthermore we have identified several acquisition targets as well as operational partnerships to extract maximum value for Labat. A key focus of the Labat strategy is growth by acquisition and we have developed a BEE model that targets specific sectors where companies and clients alike are under pressure to conform to the mandated BEE requirements.
Labat has identified that there is a massive in the current market climate with companies that are un-empowered, they need BEE partners to access more opportunities as well as funding. Labat is the perfect partner as we have developed a low risk strategy to win and retain market share through the creation of an alternative black controlled network that will be geared to compete the conglomerates.
Labat has a clearly defined an investment strategy and investment criteria that will drive the success of “Real Economic Transformation
Labat has already acquired Labat Logistics and Force Fuel respectively and is in the process of acquiring 2 additional logistics operators in South Africa to create operational scale. In South Africa, the new logistics and distribution group will benefit incrementally from Labat’s level 2 B-BBEE status. Given the dynamics of the industry, the quality of its management team, superior logistics experience, the strength of its relationships, and operational scale, Labat is positioned for success.
The proposed transactions envisaged requires the establishment of Labat Group Logistics, as a special purpose investment vehicle (“SPV”) as an asset purchase transaction with purchase consideration comprised as a combination of shares and capital and a further injection of working capital for operations.
The transaction value of R100m is to conclude the acquisition of the 2 remaining targets (3.3x three year average EBITDA). The estimated valuation of the logistics and distribution group by management amounts to more than R551m. The contemplated transactions of R100m undertaken are at significant discount to intrinsic value.
Labat Africa Ltd will be focusing on 3 key industrial sectors, Technology, Bulk Logistics and Energy. This diversification will enable Labat to extrapolate maximum value out its current acquisitions as well as phase 2 acquisitions that are currently being negotiated.