Jonathan Jawno’s Transaction Capital Offloads Nutun’s Australian Unit

Transaction Capital, founded by South African business executive Jonathan Jawno, has sold its stake in Nutun Australia Holdings, a subsidiary of global BPO pioneer Nutun, in an effort to streamline operations and increase shareholder value. The A$58.3 million ($38.1 million) transaction represents a strategic shift for Transaction Capital.

Nutun Australia Holdings specialized in debt collection, rehabilitation services, and other BPO operations. The divestment demonstrates Transaction Capital’s commitment to portfolio optimization in the face of structural issues in the South African minibus taxi business, which had an impact on its SA Taxi subsidiary.

In line with its value maximizing strategy, Transaction Capital is pursuing the separation of its WeBuyCars unit, with a capital objective of R1.25 billion ($65 million). This strategic change improves the group’s financial situation and creates new growth potential across its many business units.

Notably, Nutun’s attributable earnings, including its Australian businesses, increased to R436 million ($23 million) in the fiscal year ending September 30, 2023, from R409 million ($21.61 million) the previous year. This increase in profitability was mirrored by an increase in sales, which rose to R4.1 billion ($216.6 million) from R1 billion ($52.8 million).

A deal Capital director remarked on the sale, saying, “The transaction will help streamline Nutun’s operating structure as the business continues to strengthen its position in the global BPO services market and scale its outsourcing services across industries and geographies.” The proceeds from the disposal will be used to strengthen Nutun’s balance sheet, allowing the company to pursue both local and international growth possibilities.

Nutun Australia Holdings, a Transaction Capital subsidiary, controls 60 percent of Recoveries Corporation Holdings (RCH) and a minority share in Revive Financial Group. Allegro Funds, the acquirer in this transaction, is an Australian alternative investment company that manages assets worth around A$4 billion ($2.6 billion).

The sale of Nutun Australia Holdings demonstrates Transaction Capital’s strategic realignment to maximize shareholder value in the face of changing market circumstances. As the company navigates hurdles and seizes growth opportunities, this divestment pave the way for a more focused and resilient business model in the global BPO services industry.

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