Sasfin Holdings Limited, a financial services company in South Africa, is set to delist from the Johannesburg Stock Exchange (JSE) following overwhelming shareholder approval at its General Meeting on December 2, 2024.
The company has also secured regulatory backing for the transaction, marking a pivotal moment in its strategic realignment. The move marks a turning point for the family-owned and run business, which joined the JSE in 1987
The General Meeting yielded decisive support for the resolutions underpinning the delisting process. Shareholders voted with a 99.96% majority in favor of a subscription deal involving Unitas and Wipfin, two major stakeholders, who will acquire shares in Sasfin Wealth for cash at R30 per share. This move facilitates Sasfin Holdings’ delisting and the subsequent share repurchase, which was also approved during the meeting.
In total, shareholders representing 66% of the eligible shares participated, a robust turnout that underscores investor engagement. The resolutions passed included:
Approval of Subscription for Cash: A cornerstone of the transaction, this resolution allows Unitas and Wipfin to infuse capital into Sasfin Wealth.
Authority to Delist: Grants Sasfin Holdings the ability to terminate its JSE listing.
Share Repurchase Agreement: Enables Sasfin Wealth to buy back shares from participating shareholders.
The Prudential Authority had greenlit the subscription plan on November 22, 2024, a critical step in meeting the necessary conditions for the offer and delisting. With shareholder approval secured, the remaining condition ensuring the offer is accepted by shareholders holding no more than 10% of Sasfin’s shares is expected to be met. Shareholders collectively holding 90.14% of the company’s shares have already committed to retaining their holdings post-delisting.
Timeline for Sasfin Delisting from JSE
The company has outlined a clear timeline for completing the delisting:
Final Trading Day: December 17, 2024.
Offer Closing Date: December 20, 2024.
Suspension from JSE: December 23, 2024.
Termination of JSE Listing: December 30, 2024.
The process ensures shareholders opt for the offer to receive payment promptly, with transactions finalized by December 23, 2024.
Under mounting financial pressure from regulatory sanctions amounting to hundreds of millions of rand, Sasfin has opted to delist from the JSE, bringing an end to its more than three-decade legacy on the stock exchange.
The firm’s reset will run alongside a transaction designed to facilitate the exit of minority shareholders from the group. This will see Sasfin focus on its core Wealth and Rental Finance businesses.
Commenting on the Announcement made in July 2024, Sasfin Holdings Limited CEO Michael Sassoon said, “The aim is to simplify the group by backing our core businesses and ultimately unlock value for stakeholders. The support from our major shareholders and management team is testament to their belief in the future of Sasfin and our strategy.”
The company has been navigating challenging times, having been slapped with a fine of just under R210m in August by the Prudential Authority. R49m of that was suspended.
“A delisting is optimal as Sasfin currently has a limited free float. As an unlisted company, Sasfin will be able to more seamlessly execute on its strategic reset, which will include further strategic actions,” Sassoon added.
Sasfin Delisting from JSE decision reflects a broader trend among companies seeking flexibility away from public market scrutiny. By leveraging private capital, the firm aims to streamline its operations and focus on long-term value creation. The substantial commitment from major shareholders signals confidence in Sasfin’s strategic direction.
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