CAPE TOWN - CARTRACK Holdings, the fast-growing mobility and telematics solutions group operating in 23 countries, said yesterday it had entered into negotiations and was exploring options with its major shareholder, Karoo Pte, which, if successful, may result in the restructuring of the group.
The share price increased 2.53 percent to R42.15 yesterday, before closing at R40.80.
The price has increased strongly, from R10.99 per share five years ago, after the group substantially grew its operations and profits over the period.
“Negotiations are at an advanced stage and the independent sub-committee of the Cartrack board of directors continues to consider the ongoing discussions, under the guidance of its independent advisers,” the group said in a statement.
Karoo Pte is owned by Cartrack founder and chief executive Zak Calisto.
In early 2019, Karoo Pte increased its stake in Cartrack to 68.5 percent through a R2.7 billion purchase of shares.
In the six months to August 31, Cartrack continued to grow strongly and increased its half year dividend 335 percent to 87 cents, after revenue increased 16 percent to R1.1bn, while headline earnings per share was up 21 percent to 87.2c.
Subscription revenue grew 19 percent to R1.07bn, despite the challenges such as travel curbs imposed by Covid-19 related restrictions in many of the countries where it operates. Subscription revenue represents 98 percent of total revenue.
At the interim stage the group said a foreign investor had expressed interest to acquire Cartrack and list it on a major global stock exchange, with a secondary listing on the JSE.
Calisto said at the time the deal would be value enhancing for shareholders should it proceed.