The Western Province Rugby Football Union (WPRFU) moved closer to exiting administration, following the approval by its member clubs of a proposed sale of a 74% shareholding in its commercial arm.
The proposed transaction still requires regulatory approval, which is expected to be a formality, completing the second of three objectives mandated by the South African Rugby Union at the appointment of an administrator to the Union in October 2021.
“The move to DHL Stadium and this critical step in the securing of an equity partner for the union are two of three tasks that were set the administrator to return the Union to its traditional strength and stability,” said Rian Oberholzer, CEO of SA Rugby.
“The third is the sale of the Newlands Stadium to clear the union’s debts, and that process has been on track for some time. The sale has been stalled by an application to have the building declared a heritage site but we expect that process to have been resolved before the end of the year.”
Oberholzer thanked the WPRFU clubs and the Red Disa consortium, whose bid was approved.
“It has been a long and thorough process and one which no entity could enter lightly”, he said.
“I’d like to thank the Red Disa consortium for their engagement, patience and vision for the Union in the process. I would also like to thank the clubs for their robust engagement on what was a major decision for the Union.
“They rightly had hard questions that required answering but ultimately saw the benefits that the transaction would bring to the Union and the rugby community of the Western Cape.”
Oberholzer added that administrator, Mr Max Fuzani, would remain in place until the Newlands sale had been completed and the equity transaction had completed its regulatory approval process and been concluded.