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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Oakleaf is owned by a consortium led by RMB Corvest, Shalamuka Capital, Hasso Plattner Ventures Africa Management, and Emerald Panther Investments 99.<\/p>\n
The total value for Gijima of the Transactions is R175 million, which is inclusive of the repayment of the Gijima Australian Loan.<\/p>\n
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.<\/p>\n
The group says that ongoing investment into the MineRP Businesses is required to improve their competitive position.<\/p>\n
\u201cHowever, 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\u00a0taken a decision not to invest significantly in the MineRP Businesses. For this reason, Gijima has\u00a0taken a view that, in order to set the MineRP Businesses on their own growth trajectory, they should\u00a0be divested to investors that will adequately invest in them,\u201d it said.<\/p>\n
The proceeds from the transactions will be used to further Gijima\u00b4s various growth initiatives.<\/p>\n
The MineRP Businesses are leading mining technology and consulting businesses which provide an\u00a0integrated service offering of consulting services coupled with a broad set of mining software portfolio\u00a0solutions spanning both expert and enterprise mine technical solutions.<\/p>\n
Gjima said that shareholders holding or representing 37.72% of all the group’s shares have signed irrevocable letters of\u00a0undertaking to vote in favour of the proposed resolution to approve the transactions.<\/p>\n
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