Private school group in South Africa sold for R172 million
Trematon Capital is selling the Generation Education Group for R172 million in cash, with the schooling group still years away from realising its potential.
JSE-listed Tremonton is disposing of its direct and indirect interests in the Generation group, which offers Montessori, Cambridge and alternative education services.
The Generation Group primarily operates in the Western Cape and looks to provide schools that are more “organic and pupil-focused” than traditional schooling models.
Trematon said the curriculum is designed to support each child’s natural development and talents, fostering individual growth.
“Our goal is to create opportunities to grow independent and critical thinkers, who have no limit to their learning,” the group’s website states.
The first Generation campus opened in Sunningdale, Cape Town, in 2016. Four other campuses are now open in the Western Cape, while a location in Gauteng opened in 2024.
Generation is being sold to Education Investment Impact Fund of South Africa Proprietary Limited (Edufund), which was established in 2020.
EduFund is managed by Old Mutual Alternative Investments Proprietary Limited, and is the group’s second education impact fund. Old Mutual previously worked with Curro on Meridian Schools.
EduFund aims to provide investors with competitive risk-adjusted returns by making investments that improve the quality of education in South Africa.
Reasons for the sale
The Generation Group is a significant part of Trematon’s net asset value, and Trematon states that this value may not be fully reflected in its share price.
Its board of directors thus concluded that the disposal and distribution of the resulting net proceeds will result in value for shareholders.
“The Generation Group has also not performed according to early growth expectations and, although it has potential, it will take several years to fully realise that potential,” the group said.
“Holding the Generation Group indefinitely does not, in the board’s view, offer shareholders a realistic path to realising that value.”
The disposal also allows Trematon to convert its investment in the Generation Group into cash at a consideration close to the board’s assessment of the Generation Group’s intrinsic net asset value.
It said that the returns from the move will be sent to shareholders in due course. After the sale, Trematon will hold the net proceeds in cash.
Its board will then assess the most appropriate manner and timing of returning capital to shareholders.
Given that the deal is a category one transaction, it is still subject to shareholder approval. It also requires approval from competition authorities.
The aggregate net liabilities of the Sale Group were R48.8 million at 28 February 2026, while the loan claims amounted to R190 million at the reporting date.
The profit attributable to the Generation Group for the six months ended 28 February 2026 was R3.06 million.
A circular setting out the full details of the disposal to Trematon shareholders is expected to be distributed by roughly 4 August 2026.
Trematon’s recent results showed a group in severe trouble, having recorded a total loss of R89.4 million for the year ended 31 August 2025.
The results for the six months ended 28 February 2026 were not much better, with the group recording a loss of R36.6 million.
Photos of Generation Schools
Loading ...