enX rallies on buyer interest


enX rallies on buyer interest

Published Date: 2020-11-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

enX rallies on buyer interest

The industrial group says the potential disposal represents an attractive opportunity to monetise its investment in a major subsidiary.

enX Group's shares shot up as much as 15% yesterday after it said it had received a non-binding expression of interest to buy one of its businesses.

In a cautionary announcement, the industrial group said if successfully concluded, the proposed transaction represented an attractive opportunity for it to monetise its investment in a major subsidiary. Without naming the business, it said negotiations were in the early stages. The group operates in three main segments, including fleet management, equipment and petrochemicals.

In May, enX's shares toppled by almost a third to R3.76 on the day it said the sale of fleet management and logistics business Eqstra to Bidvest had fallen through. The transaction was terminated after failing to get the approval of the Prudential Authority (PA) by the long stop date of 4 May. It couldn't get Bidvest to agree to extend the date to give the PA enough time to complete the process, which it said was well advanced at the time.

Under the failed deal, announced in July last year, Bidvest had agreed to pay R3.1 billion for Eqstra in order to boost its own fleet management capability. enX put the business up for sale following a strategic review of its businesses.

Its shares retraced some of their gains to close 8.6% higher at R4.40.

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