SA Rugby have announced the postponement of the Special General Meeting (SGM) to consider a proposal to conclude a private equity investment.
This comes after a request from the South African government, more specifically the Minister of Sport, Arts and Culture, Gayton McKenzie.
The meeting was scheduled for members to decide whether to approve the investment tabled by Ackerley Sports Group (ASG). It is believed that the $75m (around R1.3bn) deal would be for a 20 per cent stake in the governing body’s commercial rights company will be agreed.
Key meeting postponed
SA Rugby confirmed on Wednesday that the meeting was scheduled to take place in Cape Town on Thursday but will now be rescheduled at the Minister’s request to more fully brief government on the proposal.
“We received the request from the minister this morning and we are happy to oblige, having shared the request with our member union presidents,” said Mr Mark Alexander, president of the South African Rugby Union (SARU).
“We had previously briefed him on his appointment, but we understand his request for further assurance considering the newsworthiness of this proposal.”
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The Minister said in his letter: “It is always important that levels of consultation and information sharing are adequate in matters such as these, especially when regarding matters of significant public interest.
“I would therefore like to humbly request that tomorrow’s scheduled meeting to decide on the way forward with your members be postponed so that I can be fully apprised of the particulars surrounding this proposed deal, or any deal that may be agreed to through your structures.”
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Mr Alexander said: “We look forward to providing any information the Minister may require.
“We believe that the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection. Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation.”
SARU added that a new date for the SGM before year-end will only be confirmed after the engagement with the minister.
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