Invicta disposals move forward


Invicta disposals move forward

Published Date: 2020-11-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Invicta disposals move forward

The investment holding company still needs the approval of shareholders and the competition authorities in eSwatini and Zimbabwe.

Invicta has been given the go-ahead by the local and Botswana competition authorities to proceed with the sale of four businesses in its Capital Equipment Group segment. The investment holding and management company says both approvals were unconditional.

Invicta announced the disposals in July as part of its strategy to cut debt and improve its capital structure. The businesses, which include Northmec, CSE, NHSA and Landboupart, are owned by subsidiary Humulani Marketing. They are being sold to CNH Industrial for R507 million. An additional $6 million (R100 million) for goodwill will be payable over three years. CNH Industrial is an Italian-American corporation that is domiciled in the Netherlands and listed on NASDAQ. It produces and sells agricultural and construction equipment, as well as trucks, commercial vehicles and buses.

The group's Capital Equipment division has been affected by a lack of infrastructure investment in the country, the demise of a number of large local construction companies, a downturn in the Asian markets and drought in the SA agricultural sector. Its Engineering Solutions unit has been supported by acquisitions.

Invicta's shares rose 8.3% to R12.48 on Friday.

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