Metrofile has revealed it is in talks with a US investment firm and a group of wealthy individuals looking to take over its operation.
In late March, the document specialist group informed the market of a bid by an unnamed suitor to buy the company and had constituted an independent board to consider the offer, in a sign that the group is giving it serious consideration.
On Wednesday, the company told shareholders that discussions have progressed with Main Street 2093, a special purpose vehicle through which the potential transaction will be implemented, are “at an advanced stage”.
Main Street 2093 is held by a newly incorporated holding company incorporated in Delaware, which shareholding is currently held by WndrCo, James Simmons and his family and “selected high net worth individuals”.
WndrCo is “a multi-stage technology investment firm founded in 2016 with a thematic focus of consumerisation of software. WndrCo employs professionals in Silicon Valley and New York City with strong operating capabilities and unique networks of partners”.
Its investor base includes leading institutions, corporate partners and family offices.
The group has yet to disclose details about issues like valuation for the potential deal.
Metrofile has been listed on the JSE since 1995, with empowerment partner Mineworkers Investment Company being one of its largest shareholders.
Valued at R1.1bn on the JSE, the group operates from 70 facilities and provides records and information management services in SA, Kenya, Botswana, Mozambique and the Middle East, with SA accounting for more than half its revenue.
Strategic reset
It is not the first time Metrofile has been the subject of a takeover bid. When Covid-19 took hold of the global economy early in 2020, the group was in the middle of a takeover by
US-based Housatonic Partners; the deal eventually fell through.
The company has been undergoing a strategic reset, looking to move its primary offerings towards non-paper-based subscriptions while retaining its dominant position in paper-based storage in SA.
This latest news comes two weeks after Metrofile said it had withdrawn the appointment of Bradley Swanepoel as its finance chief.
The company has seen a number of moves in its executive ranks in the past two years.
In September last year, Pfungwa Serima, the group’s CEO since 2016, stepped down and Thabo Seopa took his place.
A few months earlier, in July, Justice Tootla resigned as MD of Metrofile’s SA unit.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.