Gijima update on MineRP disposal

IT services group Gijima says it has entered into agreements with Oakleaf Investment Holdings and, MineRP Solutions (Australia) for the disposal of its mining technology and consulting businesses, MineRP.

The purchase would include all shares which MineRP Africa holds in Sirius Consulting, all the shares held by Matsema International BV, a wholly-owned subsidiary of Gijima, in AST Holdings, and in MineRP Canada.

The deal also includes those loans owing by each of AST Australia and MineRP Canada to Matsema at the closing of the transaction, but would exclude a AU$16.5 million loan owed by AST Australia to a member or members of the Gijima group.

Oakleaf is owned by a consortium led by RMB Corvest, Shalamuka Capital, Hasso Plattner Ventures Africa Management, and Emerald Panther Investments 99.

The total value for Gijima of the Transactions is R175 million, which is inclusive of the repayment of the Gijima Australian Loan.

Gijima notes that the MineRP businesses have historically attained a position amongst the top three mining technical systems providers world-wide. However, this position has declined over the last few years as a result of large scale market consolidation; and lack of sufficiently significant investment in the MineRP Businesses to enable them to expand globally through organic and inorganic means.

The group says that ongoing investment into the MineRP Businesses is required to improve their competitive position.

“However, given that the MineRP Businesses are non-core to Gijima and that the required funding could be more appropriately invested in higher yielding, core Gijima business units, the company has taken a decision not to invest significantly in the MineRP Businesses. For this reason, Gijima has taken a view that, in order to set the MineRP Businesses on their own growth trajectory, they should be divested to investors that will adequately invest in them,” it said.

The proceeds from the transactions will be used to further Gijima´s various growth initiatives.

The MineRP Businesses are leading mining technology and consulting businesses which provide an integrated service offering of consulting services coupled with a broad set of mining software portfolio solutions spanning both expert and enterprise mine technical solutions.

Gjima said that shareholders holding or representing 37.72% of all the group’s shares have signed irrevocable letters of undertaking to vote in favour of the proposed resolution to approve the transactions.

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Gijima update on MineRP disposal