Western Cape police confirmed two men, aged 26 and 31, would appear in the Cape Town Magistrate's Court on Thursday.

The breakthrough comes just a day after Mihalik, 50, was shot dead outside Reddam House Atlantic Seaboard school in Green Point as he drove up to the school in his Mercedes-Benz on Tuesday morning.

His daughter was not injured, but his young son was taken to a hospital for initial treatment before he was transferred to a different medical facility. 

The son is understood to be out of danger.

Two men were initially taken in for questioning after a suspect was seen fleeing the scene in a metallic grey VW Polo.

Police Minister Bheki Cele said on Tuesday that one suspect arrested came from outside the Western Cape.

"The [guy] came from the province I come from. They moved all the way to shoot a person here [Cape Town]."

A family living near the crime scene, who asked not to be identified, said at the time they heard the shots and saw the shooter.

"I looked over there and saw a big silver gun. It actually almost looked like a toy gun because he was so calm about it," the mother of that family told News24.

She said the shooter seemed to hide his gun behind a briefcase as he walked quickly away from the scene and got into a vehicle.

Specialist police teams had spent hours combing the scene for forensic evidence before Mihalik's covered body was taken away in a van.

News24 reported on Tuesday that Mihalik was deeply involved in the gangster underworld of Cape Town and was believed to have acted as a "facilitator" between business and gangsters.

His father Janos Mihalik said at the time that he was shocked when he saw the news on television.He said his son sometimes had arguments with clients about payment for his services."He took these cases on and agreed on the fee. I think it was a fight about money.

Netwerk24 reported on Wednesday that a taxi boss is reportedly behind the murder.The suspect, from Khayelitsha, owns taxis that service the Delft route on the Cape Flats.

News24