Eqstra’s shares jump 11.33% after it announces deal with enX
by Robert Laing
2016-06-30 10:18:03.0
EQSTRA’s share price jumped 11.33% to R2.85 on Thursday morning after it announced an all-share deal with enX.
Eqstra said enX had agreed to acquire its fleet management, logistics and industrial equipment divisions in exchange for 52.7-million shares; enX’s share price remained unchanged at R2.13 after the announcement.
This deal will make Eqstra the 29.6% owner of enX. Eqstra, however, intends unbundling the enX shares to its shareholders once this part of the deal is concluded.
Eqstra’s contract mining and plant rental divisions will gain R101.4m by selling 101.4-million preference shares to enX for R1 each.
The deal will see Eqstra’s CEO Jannie Serfontein take the role of enX’s CEO, while enX’s incumbent CEO Paul Mansour will become executive deputy chairman of the merged group.
At Thursday’s share prices, enX had a market capitalisation of R1.2bn and Eqstra of about R1bn.
Eqstra said the deal would help it substantially reduce debt and enable its contract mining and plant rental business "to pursue its own strategic agenda independent of the capital requirements of the other divisions".
Paul Mansour. Picture: FINANCIAL MAIL
EQSTRA’s share price jumped 11.33% to R2.85 on Thursday morning after it announced an all-share deal with enX.
Eqstra said enX had agreed to acquire its fleet management, logistics and industrial equipment divisions in exchange for 52.7-million shares; enX’s share price remained unchanged at R2.13 after the announcement.
This deal will make Eqstra the 29.6% owner of enX. Eqstra, however, intends unbundling the enX shares to its shareholders once this part of the deal is concluded.
Eqstra’s contract mining and plant rental divisions will gain R101.4m by selling 101.4-million preference shares to enX for R1 each.
The deal will see Eqstra’s CEO Jannie Serfontein take the role of enX’s CEO, while enX’s incumbent CEO Paul Mansour will become executive deputy chairman of the merged group.
At Thursday’s share prices, enX had a market capitalisation of R1.2bn and Eqstra of about R1bn.
Eqstra said the deal would help it substantially reduce debt and enable its contract mining and plant rental business "to pursue its own strategic agenda independent of the capital requirements of the other divisions".
