A key stakeholder behind the Red Disa consortium has revealed how his passion for Western Province rugby inspired him to save the provincial union from liquidation.
Following a majority vote in favour of the deal by the clubs that constitute the WP Rugby Football Union (WPRFU) General Council in August and approval by the South African Competition Commission in December, the equity deal for 74% shareholding in WP Professional Rugby (Pty) Ltd was concluded this week.
The consortium is made up of Cape Town-based investment holding company Fynbos Ekwiteit and Ardagh Glass Packaging, a global business with a strong South African presence. The Cape-based personal investment company Marble Head Investments completes the consortium.
Speaking in a wide-ranging interview with Rugby365, Johan le Roux of Fynbos Ekwiteit has shed light on the forming of Red Disa while explaining what inspired them to step in after DHL Stormers coach John Dobson contacted his father Michiel, founder of Capitec.
“Initially, we recognised WPRFU’s need for an equity partner,” Le Roux told Rugby365. “It seemed like a fair deal for an iconic brand.”
Despite early interest, Le Roux explained they withdrew from negotiations. However, a year later, Dobson reignited discussions.
ICYMI – Red Disa completes WP Rugby equity deal
“He understood the asset’s value to the Cape community,” Le Roux stated. “The equity process didn’t lead to a deal and John saw the writing on the wall for WP. He wanted the asset to land with someone who could take it forward.”
The alternative, Le Roux highlights, would have been another liquidation process like the Aerios drama in 2016.
“It was a thought, as a Western Province fan, that I could not stomach,” he added.
Focusing on community impact, Le Roux said they partnered with Ardagh, aligning with their philanthropic ethos, adding that André van der Veen of Marble Head Investments played a pivotal role, facilitating connections.
“We decided that it was not a commercial investment. On the philanthropic side of the family’s balance sheet, we were happy to look at it.
“There were two other parties still interested and – after a round of ‘speed dating’ with the other parties – we decided that the Ardagh Group from Ireland had similar objectives to us.
“They saw it as a community project. We decided to partner with Ardagh and that is where [Red] Disa was formed.”
Photo: Shaun Roy/BackpagePix
The post WP Rugby equity deal for ‘Cape community’ appeared first on SA Rugby magazine.
Src: sarugbymag.co.za
