(Agence Ecofin) – The Canadian banking establishment has indirectly acquired an additional minority position in the round of the health and care holding Clicks Group. This acquisition increases its exposure to the retail sector in South Africa.
The Royal Bank of Canada (RBC) has acquired, through its asset management subsidiary, RBC Global Asset Management Inc, an additional minority stake in the capital of South African health, beauty and wellness products retailer Clicks Group . The transaction announced on Wednesday October 9, 2024 allowed RBC to increase its shares to 5.01% compared to 4.6% shares held since August 2023.
Financial details of the operation have not been disclosed. The note relating to this news does not specify the buyer’s motivations either. We will know more about this transaction via the notice that the bank will send in the coming months to the Takeover Regulation Panel in South Africa.
Several transfer/acquisition movements in 2024
Despite this acquisition, RBC remains a minority shareholder in Clicks Group, just like the American financial holding company JP Morgan Chase & Co, the American investment bank Goldman Sachs Group and Standard Bank South Africa.
Since the start of 2024, these 3 financial players have carried out several acquisitions and sales of shares in the Clicks Group funding round. JP Morgan Chase & Co reduced its stake from 10.19 to 7.51% at the start of September 2024; Goldman Sachs Group revised its stake downwards (to 3.03%) at the beginning of July 2024, a few days after strengthening its shares in this healthcare group. Standard Bank of South Africa also acquired in January 2024, then sold the following month, part of these shares, retaining only 1.69% of shares on that date. These different movements observed highlight the constant reassessment of investor positions in the retail sector, in a context of market fluctuations.
Clicks Group was founded in 1968. It operates beyond South Africa, notably in Namibia and Botswana, in the personal care and wellness segment. In June 2023, it acquired the Sorbet beauty salon franchise chain. A year later, it agreed to sell its pharmaceutical arm, Unicorn Pharmaceuticals Ltd, in legal proceedings. During the first six months of the year ending February 29, 2024, the group’s net profit increased by 10.5% to 1.3 billion rand ($74.4 million).
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