EMPOWERMENT: Blackstar Jumps Ship
Recent Western Cape Business News
BLACKSTAR Investors, a London-based company specialising in South African black economic empowerment (BEE) opportunities, made a mint from DCD Dorbyl ahead of the company’s merger with Globe Engineering.
Blackstar sold its 17% shareholding in DCD-Dorbyl for R192 million in early February this year. This suggests DCD Dorbyl has an enterprise value of over R1 billion.
Blackstar said the sale realised £13.8 million, equating to a return on investment of 2.83 times money and a 76% internal rate of return in pounds sterling. This was achieved over a holding period of just 20 months.
Blackstar originally invested in DCD Dorbyl in March 2007, forking out £4.8 million to secure a leveraged buy-out backed by Investec Private Equity.
Aside from ship repairs, DCD Dorbyl specialises in rail transport engineering and heavy engineering as well as services to off-shore oil industries.
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