(Reuters) – South African Rugby has postponed a Special General Meeting that was to be held on Thursday for unions to vote on a private equity deal with United States-based Ackerley Sports Group (ASG), officials said.
The request for a postponement was made by South Africa’s minister of sport Gayton McKenzie, who asked for more time to consider the merits of the deal that would see investors take up a 20% stake in SA Rugby’s commercial rights company.
The postponement may be opportune for SA Rugby with local media reporting this week several of the 14 unions were set to request more time to digest the merits of the deal, and it was unlikely there would be the 75% of votes in favour needed to push it through.
A new date for the SGM has not been set, but SA Rugby suggested it would be before the end of the year.
“We believe the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection,” SA Rugby president Mark Alexander said in a statement on Wednesday.
“Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation.”
It has been reported that the 20% stake in the commercial rights company was valued at $75 million, though SA Rugby has not made the figure public.
Several of the unions, including those who play in the United Rugby Championship, reportedly feel this figure is too low, and have expressed misgivings over the process to appoint ASG.
SA Rugby initiated exploratory discussions with private equity firms in 2018 and confirmed ASG as the preferred partner in December last year.
(Reporting by Nick Said, editing by Ed Osmond)
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