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HCI, SUBSIDIARY METTLE TO BUY GOLDEN ARROW

27 Apr Transport

CAPE TOWN — Hosken Consolidated Investments (HCI) and its financial services subsidiary Mettle have agreed to buy Golden Arrow Bus Services, the sole provider of public bus transport in the Western Cape, for a reduced price of R250 million, the company said yesterday. HCI unveiled its plan to purchase Golden Arrow in March, when the initial consideration payable by HCI was R270 minion in cash. But following negotiation with the sellers and a due diligence review, the price had been reduced, the company said. To comply with black economic empowerment objectives, HCI said that a company jointly owned by it and Mettle, Coco Haven, would acquire all the shares in Golden Arrow. Coco Haven would then become a wholly owned subsidiary of HCI. The sale agreement, which was expected to become effective from March 28 this year. was still subject to several conditions, including approval from the relevant authorities and die shareholders of both HCI and Golden Arrow Investment Holdings.

Source: I-Net Bridge