Bidvest and enX deal fails to get approval
DURBAN - The enX Group share price declined by more than 7 percent on the JSE in the morning after the industrial group announced that its proposed transaction with the Bidvest Group will not go ahead.
In July last year Bidvest and enX entered into an agreement whereby Bidvest would acquire 100 percent of Eqstra Fleet Management and Logistics for a reported R3.1 billion, subject to approval from enX shareholders, the Prudential Authority and the Competition Commission.
In November last year enX shareholders approved the deal and supported the divestment by enX of its ownership interest in the business to Bidvest.
However, the group informed its shareholders that the final outstanding condition, the approval by the Prudential Authority established in terms of the Financial Sector Regulation Act, 2017 as required in terms of section 52 of the Banks Act, has not been fulfilled by the long stop date of May 4.
“enX could not reach an agreement with Bidvest to extend the long stop date to allow sufficient time for the Prudential Authority to complete its process, which was well advanced. Accordingly, the subscription agreement concluded between enX and Bidvest on July 12, 2019 has not become effective,” the group said.
Bidvest initially wanted to conclude the transaction before the end of last year and it said the acquisition will create funding, scale and operational efficiencies and result in a more balanced fleet exposure.
Bidvest is a services, trading and distribution group, with six reporting divisions which include Services, Freight, Branded Products, Commercial Products, Financial Services and Automotive.
enX share price shed more than 7 percent to R5 a share while Bidvest shares increased by more than 2 percent to R149.40 in the morning.
BUSINESS REPORT ONLINE