Cartrack gets the green light to list on Nasdaq


Cartrack gets the green light to list on Nasdaq

Published Date: 2021-02-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

Cartrack gets the green light to list on Nasdaq

The vehicle telematics group has offered shareholders cash or shares in Karooooo when its lists in the US.

Cartrack's shareholders have voted overwhelmingly in favour of its plan to delist from the JSE and list its holding company on the US's Nasdaq exchange.

At a general meeting yesterday, all shareholders of the vehicle telematics approved the resolution, which will see founder and CEO Zak Calisto's Singapore-registered holding group float on the tech-heavy exchange. Karooooo is offering minority shareholders R42 per share to buy them out but has given them the option to remain invested in Cartrack by accepting shares in the Nasdaq-listed company instead of the cash.

The company said the deal would align its corporate and operating structure with its growing international operations and global growth strategy, while providing access to global technology infrastructure and research and development. It will also help expand its investor base, provide access to global capital markets and potentially lead to a rerating of its valuation.

Karooooo will now apply for a listing on the Nasdaq Global Select Market, with a secondary inward listing on the JSE. Current Cartrack shareholders will be entitled to utilise up to a maximum of the proceeds they receive from the offer to subscribe for Karooooo shares.

Calisto and Karooooo, who own a combined 68% of Cartrack's stock, didn't vote in yesterday's scheme of arrangement. Shareholders holding about 80% of the remaining stock had already undertaken to support the transaction, as well as the reinvestment option.

Cartrack's shares fell 1.5% to R64 yesterday. They are still up more than 30% this year.

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