On March 9, 2016, the SPAR Group LTD (SPAR South Africa), Pinetown, South Africa (Johannesburg Stock Exchange: SPP), announced that it signed an agreement to acquire 60% of the shares in SPAR Holding AG (SPAR Switzerland), Gossau, Switzerland, for CHF 44.5 million from the existing shareholders of SPAR Switzerland.

SPAR South Africa and the sellers have agreed to an aggregate purchase price of CHF 100.8 million for 100% of the share capital in SPAR Switzerland.

At closing of the acquisition (which is intended to be on April 1, 2016), SPAR South Africa will acquire 60% of the share capital of SPAR Switzerland. Immediately prior to the closing of the acquisition, SPAR Switzerland intends to distribute a special dividend of CHF 40 million to the sellers.

SPAR Switzerland will continue to operate under the current management team and the sellers will retain the remaining 40% of the share capital of SPAR Switzerland for a period of five years post closing, following which SPAR South Africa will have the option to acquire from the sellers, and the sellers will have the option to put to SPAR South Africa, the remaining 40% of the shares of SPAR Switzerland for CHF 56.3 million.

Homburger advised SPAR South Africa on this transaction. The Homburger team was led by partner Claude Lambert (Corporate | M&A) and included associates Roland Lüthy and Nina Hagmann (both Corporate | M&A).