EnX to dispose of logistics business
JSE-listed industrial company enX said on Monday it is to dispose of the Eqstra Fleet Management and Logistics (EFML) business it acquired about two years ago. The disposal is an indication that the transaction did not go as planned, even amid enX ’ s recent upbeat comments about it. EFML provides passenger vehicle services such as leasing, fleet management, outsourcing solutions, maintenance, warranty management and vehicle tracking solutions.
JSE-listed industrial company enX said on Monday it is to dispose of the Eqstra Fleet Management and Logistics (EFML) business it acquired about two years ago.
The disposal is an indication that the transaction did not go as planned, even amid enX’s recent upbeat comments about it. EFML provides passenger vehicle services such as leasing, fleet management, outsourcing solutions, maintenance, warranty management and vehicle tracking solutions.
enX acquired EFML and Eqstra Industrial Equipment (EIE) from Eqstra Holdings in a R7.8bn deal that was finalised in November 2016. EIE provides materials handling and is the sole distributor of Toyota Forklifts and Konecranes heavyduty forklifts.
enX provides industrial equipment, petrochemicals, fleet management and logistics products and services in SA, sub-Saharan Africa and the UK.
On Monday enX said it had completed a strategic review of its ownership interest in EFML.
“As a consequence the board believes that EFML may be better suited under a different structure so as to optimise [its] value proposition.”
The company, which says it has a track record of acquiring quality industrial assets with strong market positions, said that it had started with steps to divest in EFML, either in whole or in part.
The decision to dispose of EFML is in contrast to enX’s optimism about its recent acquisition at the release of financials for the six months ended February 28. At the time, enX said EFML and EIE had performed satisfactorily.
“Under enX’s ownership, the businesses have steadied. Capital constraints experienced by the EFML business in the past have largely been released, freeing up the business to refocus on maintaining and growing its leasing book,” enX said in May.
At the end of the 2017 financial year, it said it was actively exploring opportunities in the UK. Its priorities in the 2018 financial year included finalising acquisitions of forklift dealers in the UK.