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Thu July 19 2018

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Driver sells South African business

15 May 17 Driver Group, which specialises in commercial and dispute services for the construction and engineering sectors, has sold its South African subsidiary to the local management team.

Group strategy is now to focus on claims and dispute resolution and expert witness work but Driver Trett South Africa (DTSA) has a more widespread focus and has recently been loss-making. It was regarded as non-core with little immediate prospect of improved performance under its current ownership structure.

DTSA been sold to Gerhard Bester and Christo de Witt. In consideration for the disposal, Driver will become entitled to receive the net proceeds of sale of the 300,000 Driver ordinary shares currently owned by DTSA management. Driver has agreed to write-off an inter-company balance due from DTSA totalling £0.63m. Cash proceeds received from the sale will be used for working capital purposes.

In the 2016 financial year, DTSA had revenue of £3.59m and a loss before tax of £0.55m with net liabilities of £0.18m as at 31 March 2017.

The disposal of DTSA to the local management team of Gerhard Bester and Christo de Witt is classified as a related party transaction.  

 

MPU

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