US private equity firm seeks to buy out Metrofile
JSE-listed documents management and storage company Metrofile on Monday said US-based Housatonic Consortium had made a conditional, non-binding offer to acquire 100% of the group.
Housatonic has offered to pay R3.30 per share in cash, representing a 43.4% premium above Metrofile’s current share price.
Shares in Metrofile were unchanged at R2.30 on Monday, giving it a market capitalisation of R1.04bn. They are up 31% over the past six months.
Metrofile said Housatonic intends to set up a new company in SA to implement the proposed transaction.
Housatonic Partners is a private equity investment firm with more than $1bn (R14.66bn) in capital under management, investing globally from its offices in San Francisco and Boston. It targets growing, profitable companies in the recurring business services, technology and health-care sectors.
The company’s board had constituted an independent subcommittee to consider the offer for Metrofile’s entire issued share capital, it said.
Metrofile reported a 5% increase in revenue from continuing operations to R913m for the financial year to end-June 2019. It attributed the rise to box volumes growing 5%, as well as the inclusion of acquisitions made in the prior year, with earnings before interest, tax, depreciation and amortisation at R271m.