Cartrack CEO Zak Calisto. Picture: SUPPLIED.
Cartrack CEO Zak Calisto. Picture: SUPPLIED.

Cartrack, which provides fleet-management and stolen-vehicle-recovery services, says minority shareholders have declined a mandatory offer by the company’s founder and CEO to buy them out.

In February, Cartrack founder and CEO Zak Calisto bought 68.2% of the company’s shares for R2.7bn via his investment holding firm Karoo, which took Calisto’s stake in the company to 68.5%.

The transaction triggered a mandatory offer to all other shareholders by Karoo, in terms of the Companies Act, in terms of which Karoo has offered to pay R13.44 per Cartrack share.

“Competition authority approval for the acquisition of control of Cartrack by Karoo has been secured,” Cartrack said. The company had also appointed an independent board and an independent expert to advise on the fairness of the offer.

But Cartrack said on Thursday minority shareholders, including Coronation Asset Management, had said they would not accept the offer. “No Cartrack shareholder has given any undertaking to accept the offer,” the company said.

In May, Cartrack cut its final dividend for the year to end-February, despite higher profits, saying it planned to “invest for growth”.

The company said at the time its subscriber base grew 28% to 960,798 in the year, helping it lift profit after tax by 16.3% to R361m. Total revenue was up 28% at R1.7bn.

But Cartrack cut its final gross dividend to 12c a share, from 28c previously.

Calisto said the year to end-February “marks the sixth year of consecutive double-digit total company revenue and subscription revenue growth”.