Discovery, via its subsidiary Vitality Group International Incorporated (VGI), has sold a huge chunk of its stake in Cambridge Mobile Telematics Incorporated (CMT) for $49.5 million (roughly R831 million).<\/p>\n\n\n\n
Discovery invested $5 million in 2014 to acquire a 21.67% interest in CMT, which has been an associate investment and a strategic partner to Discovery Insure. <\/p>\n\n\n\n
The Cambridge, Massachusetts-based company provides expertise in the telematics environment.<\/p>\n\n\n\n
Since 2014, there have been several capital injections by other investing parties and corporate actions, which resulted in net dilution and disposal gains for Discovery of $75 million in aggregate. <\/p>\n\n\n\n
These gains have been recognised outside of normalised profit from operations over time. This includes a partial sell-down in 2019, in which Discovery received $28.5 million in cash proceeds.<\/p>\n\n\n\n
Before this disposal, Discovery’s remaining shareholding was 8.7%.<\/p>\n\n\n\n
Near the end of 2025, TPG Global LLC made an offer to CMT shareholders in which Discovery was given an option for a partial sale of up to 50% of its remaining shareholding.<\/p>\n\n\n\n
Discovery said that the terms of the offer were appealing, especially as it expects its strategic partnership to be unaffected by the reduction in the group’s shareholding.<\/p>\n\n\n\n
The offer was subject to several regulatory approvals and other customary suspensive conditions, all of which have been obtained, and the offer has been finalised. <\/p>\n\n\n\n
Following the offer becoming unconditional, VGI disposed of 49.1% of its total shareholding in CMT, and the company received gross cash proceeds of $49.5 million (about R831 million) for the disposal.<\/p>\n\n\n\n
Discovery will still account for the investment as an associate, given its contractual strategic rights and ongoing involvement.<\/p>\n\n\n\n
Regarding the impact on earnings, the disposal has crystallised the equity-accounted earnings attributable to this portion to date.<\/p>\n\n\n\n
There was also an additional gain on the partial disposal of an interest in an associate of $7.9 million (c. R133 million), net of attributable costs and tax. <\/p>\n\n\n\n
The gain on disposal will be excluded from normalised operating profit, headline earnings and normalised headline earnings for Discovery’s financial year ending 30 June 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"
Discovery has sold a large chunk of its stake in Cambridge Mobile Telematics from the US. <\/p>\n","protected":false},"author":95,"featured_media":812767,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[],"class_list":["post-854791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=854791"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854791\/revisions"}],"predecessor-version":[{"id":854808,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854791\/revisions\/854808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/812767"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=854791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=854791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=854791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}