The Bidvest Group Limited (JSE:BVT) entered into an agreement to acquire Eqstra Fleet Services (Pty) Ltd. from enX Group Limited (JSE:ENX) for an enterprise value ZAR 3.1 billion on July 15, 2019. The acquisition is for an enterprise value consideration of ZAR 3.1 billion, including an equity value of ZAR 1.3 billion. The purchase price will be settled by Bidvest Bank. Existing Eqstra debt will be refinanced by the bank and available capital. As at August 31, 2018, annual profit after tax of Eqstra Fleet Services is ZAR 143.9 million. The acquisition is subject to approval from enX shareholders, the prudential authority in terms of section 52 of the Banks Act No. 94 of 1990 and the competition commission. The transaction has received approval from South African competition authorities on December 11, 2019. Approval of the Namibia, Botswana and Eswatini competition authorities have also been received. enX majority shareholders have given irrevocable undertakings totaling 40% in favor of the transaction. Shareholders are advised that all proposed resolutions were passed by the requisite majority of enX shareholders present in person or represented by proxy at the general meeting of shareholders of enX held on November 29, 2019. As of April 1, 2020, all financing agreements related to the refinancing of the South African materials handling business have been concluded. The only material conditions to the transaction that remains unfulfilled is the approval of the transaction by the Prudential Authority. The effective date of the transaction is expected to be towards the end of 2019. The expected date of the transaction was extended by 20 business days with effect from April 1, 2020 to May 4, 2020. The proceeds from the transaction will be used for general corporate purposes. Standard Bank of South Africa Limited acted as financial advisor and Werksmans acted as legal advisor to The Bidvest Group Limited. Macquarie Advisory and Capital Markets South Africa (Pty) Ltd acted as financial advisor and was paid a fee of ZAR 10 million, Edward Nathan Sonnenbergs Inc. acted as legal advisor and was paid a fee of ZAR 4.5 million, Deloitte Africa acted as accountant and was paid a fee of ZAR 1.3 million and Computershare Investor Services (Proprietary) Limited acted as transfer agent and was paid a fee of ZAR 0.02 million to enX Group Limited.

The Bidvest Group Limited (JSE:BVT) cancelled the acquisition of Eqstra Fleet Services (Pty) Ltd. from enX Group Limited (JSE:ENX) on May 5, 2020. The transaction was cancelled as the material outstanding condition precedent in relation to the Transaction, being the approval by the Prudential Authority established in terms of the Financial Sector Regulation Act, 2017 as required in terms of section 52 of the Banks Act, was not fulfilled by the long stop date of 4 May 2020.