Insimbi Refractory and Alloy Supplies Ltd has concluded comprehensive agreements for acquisition of Polydrum Proprietary Ltd (Polydrum). In terms of agreements, Insimbi will acquire 75 percent of issued ordinary share capital in Polydrum.
Insimbi said in its SENS announcement the acquisition further diversified its product offering to its existing client base and brought additional revenue from Polydrum’s existing client base, which was continually expanding as a result of organic growth.
“Polydrum is situated adjacent to the Insimbi campus in Wadeville, Germiston and the adjoining properties will provide Insimbi with the ability to improve logistic flows of its existing business,” Insimbi said.
Aggregate equity purchase consideration payable for the acquisition of Polydrum is
R9 368 820.00. Insimbi will settle the obligation immediately using debt funding provided by FNB Corporate Bank. In addition, Insimbi has undertaken to recapitalise Polydrum by introducing a shareholder loan of R9 381 180.00, which will be used for working capital and expansion purposes. Total purchase consideration is therefore R18 750 000.00. Effective date of the acquisition was 1 August 2015.
In other news, the Insimbi Board has also announced with immediate effect the appointment of Mrs Cleopatra Shiceka as an independent non-executive director of the Company. Mrs Cleopatra Shiceka will be appointed as the chairman of the Audit and Risk committee, and a member of the Social and Ethics and Nomination and Remuneration committees.