Transaction Capital announced interim results yesterday. Consequently, there are several news headlines dominating the press cycle which relate to Mobalyz and SA Taxi.
We would like to take this opportunity, considering the current media cycle fuelling speculation and uncertainty, to highlight that SA Taxi’s debt restructuring discussions with funders are at a very advanced stage. Furthermore, all parties are keenly focused on achieving a successful outcome for all stakeholders.
While we wait for finality in this regard, I thought it important to set out the facts as they stand and as highlighted by Transaction Capital’s management team yesterday.
Transaction Capital owns 75% of Mobalyz which operates in two distinct areas namely: the SA Taxi lending business and the Mobalyz service business, which is focused on offering services to third party vehicle asset finance players.
Over the past six months Transaction Capital at a holding company level has successfully restructured its own balance sheet. This after the successful unbundling, placement and listing of WeBuyCars on the main board of the Johannesburg Stock Exchange in early April this year and the group currently sits in a net cash position.
In December Transaction Capital announced the operational restructure of SA Taxi to focus only on the secondhand taxi market. At this time the group also highlighted that ongoing talks with funders were taking place to restructure SA Taxi’s balance sheet lending business.
The debt restructuring process, has taken longer than hoped, but meaningful progress has been made. A detailed business plan has been presented to funders, which has in principle, been well received. While final agreement has not yet been reached, the group believes that this will form the basis of a successful restructure. We expect to get clarity on the terms under which the funders will support this strategy shortly.
We are extremely pleased that the organisational restructure of Mobalyz is largely complete and early results indicate that our decision to focus on the secondhand market is the right one.
Again, we would like to stress that all parties are focused on achieving a successful outcome on the SA Taxi balance sheet restructure and we look forward to sharing more information as soon as it becomes available.
Best regards
Sean Doherty (Mobalyz CEO) and Pierre Bruwer (Mobalyz COO)
