{"id":850009,"date":"2026-02-05T16:30:00","date_gmt":"2026-02-05T14:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=850009"},"modified":"2026-02-05T16:09:54","modified_gmt":"2026-02-05T14:09:54","slug":"south-african-juggernaut-worth-r5-7-billion-buys-24-year-old-company","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/850009\/south-african-juggernaut-worth-r5-7-billion-buys-24-year-old-company\/","title":{"rendered":"South African juggernaut worth R5.7 billion buys 24-year-old company"},"content":{"rendered":"\n

Super Group has concluded a deal to acquire a 70% stake in the DIG Group of companies, marking the JSE-listed company’s expansion into mining. <\/p>\n\n\n\n

Super Group is a South African-based company that offers supply chain, dealership, and fleet solutions. It has a market cap of R5.72 billion. <\/p>\n\n\n\n

Across its dealer services, it partners with MG, Audi, Mercedes-Benz, Suzuki, Toyota, VW, TATA, Mahindra, Geely, Isuzu, Jaguar, Fiat, Nissan, Land Rover, Ford, Lexus, GWM, Cherry and many more. <\/p>\n\n\n\n

Founded in 2002, the DIG Group is currently active across 19 mining sites, supplying clients in the coal, chrome, and gold mining sectors. <\/p>\n\n\n\n

Its management team includes highly experienced specialists who have extensive expertise in mining and plant and equipment hire. <\/p>\n\n\n\n

The deal will see Super Group acquire majority stakes in several businesses, including DIG Earthmoving, DIG Plant Hire, DIG Mining, and DIG Civils, from the seller, Dugald Watson. <\/p>\n\n\n\n

The move includes a put option between the seller and Super Group, where Watson can require Super Group to purchase the remaining 20% on the fifth anniversary of the effective date. <\/p>\n\n\n\n

The move forms part of Super Group’s strategy of selective acquisitions in its core supply chain, fleet services and dealerships business. <\/p>\n\n\n\n

“The acquisition of DIG will significantly complement the group\u2019s fleet solutions offering, capturing a market currently untapped by Super Group,” it said. <\/p>\n\n\n\n

The group said that DIG has an innovative management team, established Original Equipment Manufacturer relationships, a well-maintained, modern facility, and a strategically located facility. <\/p>\n\n\n\n

This makes the DIG Group well-positioned in a sector which has rigorous safety compliance requirements, comprehensive customer induction and onboarding protocols, and high upfront capital investment barriers.<\/p>\n\n\n\n

The purchase consideration for the acquisition comprises R448 million in cash, plus a profit warranty payment capped at R160 million. The acquisition will be effective on 1 March 2026.<\/p>\n\n\n\n

The put option, based on fair value at the time of exercise, is capped at R500 million and will be settled in cash. <\/p>\n\n\n\n

Financial Information<\/h2>\n\n\n
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The combined fair net asset value of the DIG companies amounted to R575,976,254, with the DIG Group’s normalised Profit After Tax being R191,513,390.<\/p>\n\n\n\n

Currently, Watson will retain the reamining 30% of the shares in the sales company, with the existing DIG management team remaining employed in the business.

The deferred contingent profit warranty payment will be based on whether the DIG companies achieve an average annual profit of over R200 million in FY2026 and FY2027.

If the average profit after tax exceeds the warranted amount, Watson will be entitled to receive an amount equal to R3.20 for each R1 by which the average profit after tax exceeds the warranted amount.<\/p>\n\n\n\n

If the average after-tax profit is less than the warranted amount, SGH will be entitled to a clawback of R3.20 for each R1 by which the average profit after tax falls short of the warranted amount. <\/p>\n\n\n\n

As the acquisition is classified as a Category 2 transaction of the JSE Listing Requirements, it does not need shareholder approval. <\/p>\n\n\n\n

As part of the implementation, each of the DIG companies will adopt new Memoranda of Incorporation to ensure Super Group’s compliance with the JSE’s listing requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Super Group is moving into mining with the acquistion of the DIG Group of companies, with R448 million of cash up-front and possible future payments. <\/p>\n","protected":false},"author":95,"featured_media":850018,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[24685,1368],"class_list":["post-850009","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-dig","tag-super-group"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/850009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=850009"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/850009\/revisions"}],"predecessor-version":[{"id":850022,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/850009\/revisions\/850022"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/850018"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=850009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=850009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=850009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}