South African-based vehicle tracking firm Cartrack may be sold to a Singaporean investor.
Cartrack provides services related to stolen vehicle recovery, fleet management and insurance telematics through Software as a Service (SaaS).
The company competes with JSE-listed DiDigicore, which was acquired by US-based technology firm Novatel for R1.1 billion. It also competes with JSE-listed Mix Telematics and Tracker.
The JSE-listed company informed investors on Monday that it has received an expression of interest from a foreign investor.
It added that the investor is proposing a transaction that could ultimately result in the restructuring of the company such that shareholders would hold shares, pursuant to a scheme of arrangement, in a Singapore entity which would be primarily listed on a major global stock exchange with a secondary listing on the JSE.
“The Cartrack board has constituted an independent sub-committee to assess and consider the terms of the proposal,” the vehicle tracking firm said.
“Any proposed restructure of the company would be subject to various conditions precedent including regulatory approvals (both locally and abroad) and approval by Cartrack shareholders to the extent required.”
Cartrack also advised shareholders to exercise caution when dealing its securities until a further announcement is made in this regard.
Zak Calisto, the founder and CEO of Cartrack owns 68.5% of the company.
Cartrack has a presence in more than 20 countries in Africa, Europe, USA, Asia and the Middle East. As part of its international expansion drive, Cartrack opened new operations in six countries in Asia and the Middle East at the end of 2015, using the established Singapore business as the central hub for the region.
