Treacle Venture Partners announced yesterday that we have sold the 25% equity interest held by Treacle Fund I in software company ERP.com to Blitec, an investment holding company representing a broad group of Black IT professionals, for a cash consideration of R42 million.
Blitec also owns a stake of 30% in SAP Public sector and strategically the transaction makes sense for both ERP.com and Blitec. The company now is well positioned for even stronger growth going forward.
The transaction was concluded at 98 cents per share, representing a 14% discount to the 30 day moving average share price. Despite the discount, the investment was still very lucrative for investors in Treacle Fund I, providing them with an annualised internal rate of return of 79%.
As a result of the sale, we have now returned the original cost of the entire investment portfolio of Treacle Fund I to investors in cash and still hold interests in 4 investments to the value of approximately R88 million.
Given the quality of these investments and their future growth potential we remain confident of providing the investors in Treacle Fund I with exceptional returns over the next 3 to 4 years.
Kind regards,
Rudolf Pretorius
Christoff Botha
Njabulo Mthembu
Konrad Fleischhauer
