Sale of enX’s fleet management business to Bidvest fails

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Bidvest opted not to extend a date for the transaction as the parties waited for approval from the Prudential Authority

Group says the sale of its fleet management business, Eqstra, to Bidvest has fallen through after approval from the Prudential Authority failed to materialise before a deadline for the transaction.

EnX’s share price plunged 25.43% to R4 in morning trade on Tuesday, putting it on track for its worst one-day performance in at least five years, according to Infront data. Bidvest rose 0.55% to R146.15. The parties said in July 2019 that they had agreed to the sale of Eqstra Fleet Management and Logistics in a deal worth about R3.1bn, which had been approved by enX shareholders in November.“EnX could not reach agreement with Bidvest to extend the long stop date to allow sufficient time for the PA to complete its process, which was well advanced,” the group said in a statement.

EnX, which provides industrial and petrochemical products as well as fleet management services, has been looking to sell Eqstra since October 2018, saying the business would be better utilised in a different structure.

 

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