COMPANY COMMENT
Cautionary by enX Group frustrating for shareholders
Industrial services group's six month cautionary a bit frustrating for shareholders
Industrial services and supplies conglomerate enX Group has been under cautionary for almost six months, which perhaps is frustrating for shareholders who were hopeful that a value unlock was imminent. The details of the cautionary — first issued in mid-October — were that a strategic review by enX prompted a proposal to divest of Eqstra Fleet Management and Logistics (EFML). Officially, enX believed that “EFML may be better suited under a different structure so as to optimise EFML’s value proposition”. Clearly, this is not an easy time to be selling “mobility” assets, with the gears of the local economy grinding ominously. But enX’s EFML assets have proved profitable and operationally robust over the years, and it’s difficult to imagine that there would not be some serious interest from other industrial entities or even private-equity players for either the whole or parts of this hub. Price, one presumes, would be the big sticking point.Although enX’s share price perked up (shiftin...
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