Fidelity Security Shakes Up Ownership Structure with Two Major Deals

Fidelity Security Services, South Africa’s leading private security company, is making headlines with two significant transactions aimed at refining its business structure and broadening its reach.

The Competition Commission has approved both deals, marking a crucial step in Fidelity’s long-term strategic goals. The first deal involves the acquisition of SSG Holdings, a company offering a range of services including guarding, technical security, cleaning, and facilities management — services that closely complement Fidelity’s existing operations.

To prevent anti-competitive behavior, the companies agreed to limit any post-merger restraints of trade to a maximum of three years, and only within SSG’s line of business. Additionally, Fidelity has committed to integrating eligible SSG employees into its employee share ownership scheme, a move likely to boost morale and support transformation in the sector.

The second, perhaps more intriguing transaction, is the acquisition of Fidelity by New Seasons Security Services (NSSS) — a special purpose vehicle created to streamline Fidelity’s shareholder structure. NSSS is affiliated with New Seasons Investments, a long-standing B-BBEE partner of Fidelity. This internal restructuring aims to unlock liquidity for all shareholders, particularly benefiting BEE stakeholders who have supported the group since its buyout in 2006.

This latest shake-up has once again stirred talk of a potential listing on the Johannesburg Stock Exchange (JSE). Fidelity has not confirmed any listing yet but has acknowledged that capital realisation and long-term value creation for shareholders are high on its strategic agenda.

“In line with our commitment to sustainable growth, we continue to evaluate opportunities that can unlock value for our investors,” a spokesperson from Fidelity told BusinessTech.

For now, the company’s expansion and internal transformation efforts continue with the Competition Commission’s nod, as the transactions move to the Competition Tribunal for final approval.

As Fidelity strengthens its position in the market, industry watchers will be keeping a close eye on whether this strategic reorganisation is the final step before a long-anticipated public offering.

{Source: BusinessTech}

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