The South African investor Transaction Capital has revealed its aim to acquire all of the shares of the car marketplace WeBuyCars by 2026, after previously investing in the startup last May.
Transaction Capital, a shareholder in WeBuyCars who owns 74.9 percent of the company’s stock, has further inked a sale and purchase agreement to buy the remaining 25.1 percent. The used car platform’s shareholders and creators, Faan and Dirk van der Walt, have a put option that expires in 2024, with a final provision that allows them to sell all of their shares in 2026.
Last May, Transaction Capital increased its stake in WeBuyCars from 49.9% to 74.9%.
The South African investment group claims that the transaction has been approved by the country’s competition authorities. Despite the country’s business environment, Transaction Capital’s subsidiary WeBuyCars continued to perform better than projected, according to its interim results for the year ending September 30.
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WeBuyCars, according to the South African investor, is the market leader in its market area in South Africa. Despite the epidemic, this company’s used vehicle trade-ins have surged dramatically due to rising new vehicle prices.
A Look At What WeBuyCars Does
Founded in 2001, WeBuyCars offers online valuations and purchase of used cars in South Africa. WeBuyCars began as a passion for brothers Faan and Dirk van der Walt in Bronkhorstspruit, an hour’s drive east of Pretoria, South Africa’s capital. Faan used to acquire, patch up, and sell used automobiles as a youngster, having learnt auto maintenance from his father, along with his brother Dirk.
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WeBuyCars had been self-funded for 16 years until Fledge Capital’s investment in 2018. The company had no operating debt and recorded year-over-year sales increase of about 60%.
WeBuyCars Car marketplace
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer