MIDRAND, South Africa--(BUSINESS WIRE)--MiX Telematics has entered into an agreement to repurchase all of its
shares currently held by Imperial Holdings Limited. This equates to
200,828,260 MiX Telematics shares which represents 25.33% of MiX
Telematics’ issued share capital. MiX Telematics has agreed to pay 2.36
South African Rand per share, a 1.28% premium to the prior 30-days
average trading price, for an aggregate repurchase consideration of
473,954,694 South African Rand.
"At current valuation levels for MiX Telematics shares, we can see no
better acquisition opportunity than investing in our own business. We
expect that this transaction will be earnings and value accretive for
shareholders and view this as an excellent use of our cash," said Stefan
Joselowitz, CEO of MiX Telematics.
“The disposal of Imperial’s minority stake in MiX is consistent with our
espoused and recently demonstrated strategy to dispose, inter alia, of
non-core and minority investments. Imperial’s investment had no bearing
on MiX’s valued supplier status, which was established through
competitive, innovative products and services. We look forward to
perpetuating this business relationship in the years ahead,” said Mark
Lamberti Group CEO of Imperial Holdings.
“MiX’s long and mutually beneficial relationship with Imperial remains
robust, and we look forward to strengthening this association going
forward. Due to its large motor vehicle distribution channel in South
Africa and its various transport and logistics businesses, the Imperial
group remains an important customer to MiX,” concluded Joselowitz.
As the repurchase constitutes a transaction with a related party, it
remains subject to a fairness opinion required in accordance with the
JSE Listings Requirements as well as shareholder approval. A circular
containing full details of the terms of the repurchase, as well as the
salient dates and times for the general meeting, will be posted to all
shareholders in due course and will be announced on SENS as well as
through 6-K filings to be furnished to the Securities and Exchange
Commission.
Shareholders are advised that a further announcement setting out the
financial effects of the repurchase will be released on SENS in due
course.
Shareholders are further advised to continue to exercise caution when
dealing in the company’s securities until a further announcement is made.
About MiX Telematics Limited
MiX Telematics is a leading global provider of fleet and mobile asset
management solutions delivered as SaaS to customers in more than 120
countries. The Company’s products and services provide enterprise
fleets, small fleets and consumers with solutions for safety,
efficiency, risk and security. MiX Telematics was founded in 1996 and
has offices in South Africa, the United Kingdom, the United States,
Uganda, Brazil, Australia, Romania, Thailand and the United Arab
Emirates as well as a network of more than 130 fleet partners worldwide.
MiX Telematics shares are publicly traded on the Johannesburg Stock
Exchange (JSE:MIX) and MiX Telematics American Depositary Shares are
listed on the New York Stock Exchange (NYSE:MIXT). For more information
visit www.mixtelematics.com.
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