South Africa’s Metrofile is in a process to buy G4S Secure Data Solutions Kenya (SDS Kenya), the largest records management company in East Africa.
The JSE-listed document provider that store volumes of physical records in a store room informed investor on Monday that it has concluded a share purchase agreement to buy SDS Kenya from UK-based G4S nternational Holdings and from Nurun Investments Limited, a Kenyan company.
The company said the maximum purchase consideration of SDS Kenya is KES2.125 billion (R281,4million).
This will be settled in cash from Metrofile’s existing resources and a facility arranged for this purpose with Standard Bank.
The Metrofile board is also considering a capital raise of up to R100 million by way of an underwritten rights issue to reduce the bank debt utilised to fund the purchase consideration.
Metrofile said the deal is a strategic move which will increase its footprint in Africa and provide it with an expanded international client base, strong management team and local expertise in the records management industry.
“The transaction demonstrates Metrofile’s positive intention to continue the roll-out of its services into selected African countries through organic as well as acquisitive growth,” the company said.
“The board believes that the Kenyan records management market has significant potential for growth, and that SDS Kenya is a well-established business that will provide an ideal strategic platform to extend Metrofile’s presence in the broader East Africa region.”
SDS Kenya was established in 2004 and operates a records management business based in Nairobi, Kenya, specialising in all aspects of corporate archiving and record management, including storage, indexing, retrieval, tracking, archiving and records management digital services.
The deal is subject to approval by the competition commission.
Metrofile Holdings’ largest shareholder is its empowerment partner, the Mineworkers Investment Company, which owns 34.41% of its equity.