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Transaction Capital, led by South African business executive Jonathan Jawno, has divested its interest in Nutun Australia Holdings, a subsidiary of global business process outsourcing (BPO) leader Nutun, in a move aimed at streamlining operations and enhancing shareholder value. The A$58.3-million ($38.1 million) transaction marks a strategic shift for Transaction Capital.
Nutun Australia Holdings primarily focused on debt collection, rehabilitation services, and other BPO offerings. The divestment underscores Transaction Capital’s commitment to optimizing its portfolio amidst structural challenges within the South African minibus taxi industry, which impacted its SA Taxi subsidiary.
Aligned with its value-maximization strategy, Transaction Capital is also pursuing the separation of its WeBuyCars unit, targeting R1.25 billion ($65 million) in capital. This strategic move strengthens the group’s financial position and unlocks growth opportunities across its various business units.
Nutun’s financial performance and strategic implications
Notably, Nutun’s attributable earnings, inclusive of its Australian operations, saw a rise to R436 million ($23 million) in the fiscal year ending Sept. 30, 2023, compared to R409 million ($21.61 million) the previous year. This growth in earnings was mirrored by an increase in revenue, which climbed to R4.1 billion ($216.6 million) from R1 billion ($52.8 million).
A director of Transaction Capital commented on the sale, stating, “The transaction will help streamline Nutun’s operating structure as the business continues to strengthen its position in the global BPO services market and scale its outsourcing services across industries and geographies.” Proceeds from the divestment will be directed towards bolstering Nutun’s balance sheet, facilitating the pursuit of both local and international growth opportunities.
Nutun Australia sold to Allegro Funds in strategic move by Transaction Capital
Nutun Australia Holdings, a unit of Transaction Capital, holds a 60-percent stake in Recoveries Corporation Holdings (RCH) and owns a minority investment in Revive Financial Group. Allegro Funds, the acquirer in this transaction, is an Australian alternative investments company with approximately A$4 billion ($2.6 billion) in assets under management.
The sale of Nutun Australia Holdings signifies Transaction Capital’s strategic realignment to optimize shareholder value amidst evolving market dynamics. As the company continues to navigate challenges and capitalize on growth opportunities, this divestment sets the stage for a more focused and resilient business model in the global BPO services market.
