The saga related to a major SA Rugby private equity deal – reported to be in the region of R1.3 billion ($75 million) – was supposedly in line to give the green light to Seattle-based Ackerley Sports Group (ASG) to acquire a 20% stake in Saru’s commercial arm for an outlay of R1.3 billion ($75 million).
However, SA Rugby has now postponed a planned Special General Meeting (SGM) to consider this proposal, at the request of Mr Gayton McKenzie, the Minister of Sport, Arts and Culture.
The meeting was scheduled to take place in Cape Town on Thursday but will now be rescheduled at the minister’s request to more fully brief government on the proposal.
“We received the request from the minister this morning and we are happy to oblige, having shared the request with our member union presidents,” said Mr Mark Alexander, president of the South African Rugby Union (SARU).
“We had previously briefed him on his appointment, but we understand his request for further assurance considering the newsworthiness of this proposal.”
The Minister said in his letter: “It is always important that levels of consultation and information sharing are adequate in matters such as these, especially when regarding matters of significant public interest.
“I would therefore like to humbly request that tomorrow’s scheduled meeting to decide on the way forward with your members be postponed so that I can be fully apprised of the particulars surrounding this proposed deal, or any deal that may be agreed to through your structures.”
Mr Alexander said: “We look forward to providing any information the Minister may require.
“We believe that the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection. Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation.”
A new date for the SGM before year-end will only be confirmed after the engagement with the minister.
SA RUGBY EQUITY DEAL TIMELINE:
- 2018: SA Rugby initiates exploratory discussions with several private equity firms
- 2019: The SA Rugby General Council, composed of its member unions, authorizes the Executive Council to formally begin negotiations with CVC
- 2020-2021: The impact of the pandemic stalls conversations as the Springboks do not play a home test in front of fans for two years
- 2022: The conversation resumes in earnest although the due diligence process proceeds at a slow pace.
- 2023: Negotiations with CVC continue slowly. SA Rugby asks CVC to improve their post-Covid offer. During this time, several other potential investors express interest.
- 2023: Discussions are held with multiple potential investors but, by year end, only CVC and newcomer Ackerley Sports Group (ASG) remain serious contenders.
- 2023 (December 8): SA Rugby’s member unions unanimously approve ASG as the preferred bidder following presentations from both entities, which include details on the associated success fees and transaction costs. The members mandate management to present a formal offer to the Council for consideration
- 2024 (March, May and June): Information sessions are held with all members unions, during which all questions are addressed. Additional sessions for smaller groups are planned.
- 2024 (October): Further information sessions are held for members in five separate groups to thoroughly examine the proposal.
- 2024 (16 October): A Special General Meeting postponed
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