RMB advises on the proposed acquisition of Long4Life

MEDIA RELEASE

14 March 2022

RMB advises and supports Old Mutual Private Equity’s proposed acquisition of Long4Life

RMB is acting as sole financial adviser and funder to Old Mutual Private Equity on their offer to acquire 100% of the JSE-listed, lifestyle-themed company Long4Life Limited (“Long4Life”).

Old Mutual Private Equity’s offer of R6.20 per share recently received approval from Long4Life shareholders and values Long4Life at approximately R4.1 billion, representing a substantial premium to the closing share price on the day prior to Long4Life shareholders first being made aware of an unsolicited expression of interest received for Long4Life.

The genesis of the transaction was in April 2021 when Long4Life announced a strategic review of the business. As an investment holding company incorporating retail, wholesale, manufacturing, service, merchandising, distribution and e-commerce, the Long4Life board felt the market wasn’t recognising the true value of its underlying asset portfolio.

Old Mutual Private Equity, with its available funds and extensive expertise from several previous investments in similar segments, felt Long4Life was a natural fit. RMB assisted in crafting a proposal and approach which ultimately led to extensive engagement with Long4Life and a satisfactory confirmatory due diligence. From approaching Long4Life after its announcement of a strategic review to announcing the transaction in late December 2021, the deal was achieved in a compressed timeline.

Said Thabo Ndimande, Corporate Finance Executive, for RMB: “Our extensive advisory and funding experience enabled us to deliver on this transaction within a short timeframe. Our ability to put forward a comprehensive and fully funded solution in collaboration with various stakeholders ensured a smooth delivery for Old Mutual Private Equity on this landmark private equity transaction. It is testament to RMB’s ability to help clients navigate significant, complex transactions through a holistic advisory and funding solution.”

The transaction is set to conclude in the second quarter of 2022.

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Contact:

Kate Kelly l RMB l kate.kelly@rmb.co.za