JSE listed enX Trading Investments and enX Leasing Investments have entered into a sale of shares agreement with Abakhulu Investments, in terms of which enX Trading will dispose its 66% interest (including loan claims) in Centlube, its 100% interest (including loan claims) in Ingwe Lubricants and its 37% interest in Zestcor Eleven. enX Leasing will dispose of its loan claim in Ingwe for an aggregate base price of R275,667,525. The Purchaser is jointly controlled by family trusts of Nicholas Graeme Dunn and Kyle Peter Dunn, who are not related parties to enX.
The Competition Commission has approved the proposed transaction. The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. The proposed transaction does not raise significant public interest concerns.
The Disposal is in line with the Company’s strategy as set out in the outlook statement in the summarised group financial results for the year ended 31 August 2024 released on the Stock Exchange News Service on 4 November 2024, wherein the Company indicated that it would follow a strategy of increasing shareholder value by growing the underlying businesses and should a suitable opportunity arise, strategically dispose of those businesses.
Centlube directly controls African Group Lubricants. AGL blends and markets oil lubricants and greases in South Africa and sub-Saharan Africa and is the sole distributor of ExxonMobil lubricants (excluding marine and aviation) and Quaker Houghton International’s advanced fluid solutions and services (excluding metalworking).
Ingwe owns the CERA blending plant in Boksburg, which is necessary for the blending of lubricants within AGL’s operational activities.
Zestcor, an associate of enX, is the only authorised distributor of ExxonMobil base stocks for South Africa and Sub-Saharan Africa. It specialises in the sales, marketing, procurement and supply of Group I, II and III base oils.
The Sellers have provided the Purchaser with a 3-year undertaking not to compete in South Africa and the Democratic Republic of Congo, subject to certain exclusions.
