Pepkor to create R21.3 billion fintech platform
South African retail group Pepkor Holdings Limited has announced plans to combine its Flash business with fintech company Shop2Shop to create a large-scale merchant commerce and financial technology platform targeting both the formal and informal economy.
Staff Writer
South African retail group Pepkor Holdings Limited has announced plans to combine its Flash business with fintech company Shop2Shop to create a large-scale merchant commerce and financial technology platform targeting both the formal and informal economy.
The proposed transaction will see Pepkor acquire a controlling 57.1% stake in the newly created entity, referred to as FintechCo, through a combination of a R1.57 billion cash investment and the contribution of 100% of its ownership in Flash, valued at R10.6 billion.
The transaction implies a total equity valuation of approximately R21.3 billion for FintechCo. Pepkor said the combination will bring together Flash’s value-added services (VAS) distribution network and digital products platform with Shop2Shop’s merchant-focused fintech capabilities, including payments, acquiring, cash management and trade services.
