The Western Province Rugby Football Union (WPRFU) can reportedly expect a R160-million cash injection if the transaction for an investment in its business arm is successful.
According to a report on Netwerk24, details of the proposed transaction for a shareholding of 74% were presented to SA Rugby Union’s financial committee on Friday, and was favourably met.
It is understood to be R60m more than the American consortium led by Marco Masotti previously wished to pay for a majority share in WP Professional Rugby (Pty) Ltd.
The latest news comes after SARU released an administration update on WPRFU on Friday.
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“Media are advised that a consultation process has begun with a potential equity partner to invest in WP Professional Rugby (Pty) Ltd, the commercial arm of the Western Province Rugby Football Union, which remains under administrative control of the South African Rugby Union,” it read.
“A formal offer from a preferred bidder has been received by the board of WP Professional Rugby (Pty) Ltd and has been presented to the finance committee of SARU. That committee, in the first instance, will make a recommendation to the Executive Council (Exco) of SARU, once it has completed consultations with the bidder.
“Once Exco has reviewed the offer, it will be presented to the General Council of WPRFU, which body has the final verdict on any such agreement.”
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