In a landmark move for South Africa’s education sector, billionaire entrepreneur Jannie Mouton has unveiled a groundbreaking initiative that could reshape the landscape of private education in the country. Through his Jannie Mouton Foundation, he plans to acquire Curro Holdings for R7.2 billion, aiming to transform the educational giant into a non-profit organization. This strategic shift is designed to enhance access to quality education for more South African children, creating a brighter educational future for many.
The proposed acquisition comes with enticing benefits for Curro’s shareholders, who are set to receive a generous premium of 60% over the company’s closing price from August 25. The deal offers a mixed payment structure, including cash, shares in Capitec Bank, and shares in PSG Financial Services, valuing Curro at R7.2 billion. This significant valuation would result in Curro’s delisting from the Johannesburg Stock Exchange after being publicly traded for over a decade.
Under the structured Scheme of Arrangement, shareholders are expected to receive an estimated R13 per share, comprised of roughly 6.6% in cash and the remainder through shares in the two financial institutions. This strategic move not only benefits shareholders but could also lead to transformative changes within the education system.
Mouton, who has played a pivotal role in co-founding Capitec Bank, PSG Group, and Curro itself, highlighted his commitment to improving educational opportunities across South Africa. He expressed optimism about the potential of this acquisition, stating, “Over time, this will open the door for thousands more children to attend Curro schools through bursaries, broadening access to excellent education.” His vision positions Curro as an evolving independent educational institution focused on reinvesting profits into expanding facilities, building more schools, and providing bursaries to deserving students.
The announcement was met with excitement, as Curro’s share price saw a staggering increase of over 50% shortly after the news broke, indicating strong investor confidence in the proposal. Curro CEO Cobus Loubser confirmed that the independent board will thoroughly evaluate the offer and clarified that the foundation aims to enhance educational offerings, not compete with Curro.
This initiative marks a significant philanthropic contribution that could be among the largest in South African educational history, potentially changing the lives of countless children. As discussions progress, the education community and parents alike eagerly anticipate how these developments will enhance access to quality schooling across the nation.
Stay tuned, as we bring you more updates on this significant educational milestone for South Africa!
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