MiX founder to cash in on JSE star performer

MiX Telematics founder and CEO Stefan Joselowitz plans to sell up to R87m worth of the company’s stock, based on current prices, to diversify his investment portfolio.

The New York and JSE-listed provider of fleet and mobile asset management solutions said Joselowitz, who holds about 4.8% of the company’s shares in issue, will sell the equivalent of up to 8.8-million ordinary shares in 2019.

That will reduce Joselowitz’s stake to 3.2%.

The planned sale process comes while MiX is trading near its all-time highs. The company’s shares closed 1% higher at R10 on Thursday, posting an excellent 52% improvement in the year to date.

It makes the company one of the JSE’s star performers in 2018, an otherwise torrid year for stocks on the local bourse.

“My stake in the company currently represents a significant portion of my investment portfolio and I have reached a stage of life where I need to create some liquidity to partially diversify my investments and begin thinking about estate planning,” Joselowitz said.

MiX will remain “the main component” of Joselowitz’s investment portfolio and he will “still be one of the company’s largest shareholders”, he said.

In November, MiX raised its revenue and margin projections for its 2019 financial year thanks in part to a strong first-half performance.

“At the midpoint of our total revenue guidance, we expect fiscal 2019 revenue of R1.95bn, which would represent constant currency growth of 11.85%, an increase from our previous guidance for constant currency growth of 10%,” interim finance chief Paul Dell said.

Joselowitz said MiX plans to introduce a new employee share scheme based on more ambitious targets.

I HAVE REACHED A STAGE WHERE I NEED TO CREATE LIQUIDITY TO ... DIVERSIFY MY INVESTMENTS AND BEGIN THINKING OF ESTATE PLANNING

“This grant is 100% performance based and only vests on the achievement of dual targets for cumulative subscription revenue and adjusted ebitda [earnings before interest, tax, depreciation and amortisation] in the fiscal 2019 and 2020 years,” Joselowitz said.

The scheme, based on “a stretch target”, will better align management and shareholder interests, he said.