Stefan Joselowitz, CEO of Mix Telematics, is planning to sell a portion of his ordinary shares in the JSE-listed telematics group for asset diversification and estate planning reasons.
The founder of the JSE and New York Stock Exchange-listed firm has established a trading plan of the shares.
The plan includes converting a portion of the ordinary shares into American depositary shares (ADSs), each representing 25 ordinary shares of MiX over a specific period of time, the company informed investors on Thursday.
The shares are valued close to R90 million.
Joselowitz currently owns the equivalent of more than 1,07 million ADSs (made up of more than 26,3 million ordinary shares and 20,000 ADSs) which represents 4.78% of MiX Telematics’ shares in issue, excluding treasury shares.
The company said Joselowitz is in the process of converting all of his ordinary shares into ADSs.
Under the trading plan, Joselowitz may sell up to 350,000 ADSs (equivalent to more than 8,7 million ordinary shares) over a period of between 6 and 12 months.
“If all the planned sales under the trading plan are completed, Joselowitz will still beneficially own 723,681 ADSs (equivalent to more than 18 million ordinary shares) which will represent 3.22% of the company’s shares in issue (excluding treasury shares),” the company informed investors.
The transactions under this plan will start no earlier than 10 January 2019.
“I am proud of the great company we have built since I founded MiX Telematics in 1996. 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,” said Joselowitz.
“MiX will continue to be the main component of my investment portfolio once this selling program is completed and I will still be one of the company’s largest shareholders. I am very excited about the future of MiX Telematics and remain focused on executing on our strategic priorities to generate additional value for all shareholders.”
Joselowitz successfully orchestrated the company’s listing on the JSE in 2007 and in 2013 led the team that listed the business on the NYSE.
Prior to MiX, from 1984 to 1995, he served as CEO, and previously, sales director, of Shurlok, a developer of electronic systems for the automotive industry, helping to build the company into a leader in the field of vehicle safety and security.
The shares of MiX Telematics, which is valued at R5.9 billion closed 1.01% higher at R10 on Thursday. The stock has risen 90% in the past five years and 257% in the past three years.