MiX Telematics Announces Intention to Repurchase Shares
"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.