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MiX Telematics Reveals Plan To Buyback Shares Held By Imperial Holdings

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MiX Telematics Ltd (NYSE: MIXT) disclosed that it struck a deal to buy back all of its shares currently held by Imperial Holdings Limited. According to the company, that would equate to 200.83 million shares representing 25.33 percent of the issued share capital.

MiX Telematics indicated that it agreed to pay 2.36 South African Rand per share, a 1.28 percent premium to the prior 30-days average trading price. That translated into an aggregate consideration price of 473.95 million South African Rand.

CEO Stefan Joselowitz commented, "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."

On the other hand, Imperial Holdings' Group CEO, Mark Lamberti, said, "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."

Joselowitz concluded by stating, "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."

Following the news, shares of the company traded 4.42 percent higher on Tuesday.

Posted-In: News Buybacks

 

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