MIDRAND, South Africa--(BUSINESS WIRE)--MiX Telematics Limited, a leading global provider of fleet and mobile asset management solutions delivered as Software-as-a-Service to customers in over 120 countries, today announced that its Board of Directors has concluded its previously announced review of the Company's strategic alternatives.
This extensive review, conducted with guidance from external advisors, included the optimization of capital structures and an evaluation of various ownership options, with the latter resulting in significant interest from prospective buyers. At the completion of the process, the Board of Directors concluded that continuing to execute on the Company’s strategic growth plans was the best path to maximizing long term shareholder value.
The business has a track record of generating strong cash flow, and is committed to maintaining sufficient cash resources to take advantage of any acquisition opportunities. In light of MiX Telematics’ healthy balance sheet and strong cash flows, the Board has decided to reintroduce the company’s policy of paying regular dividends which going forward will be considered on a quarter-by-quarter basis. Furthermore, the board has declared the following dividends:
- In respect of the 2015 fiscal year which ended on March 31, 2015, a dividend of 8 South African cents per ordinary share to be paid on September 18, 2015.
- In respect of the 1st quarter of fiscal year 2016 which ended on June, 30 2015, a dividend of 2 South African cents per ordinary share to be paid on September 18, 2015.
“Our in-depth strategic review reaffirmed our belief that the best path to maximize shareholder value is to continue executing against the company’s strategic plan, which has been proven to deliver a combination of solid growth, profitability and cash flow,” said Stefan Joselowitz, President and CEO. “As we look ahead, we believe the Company’s differentiated ability to deliver compelling fleet management and asset tracking solutions on a global basis will continue to drive strong performance and market share gains.”
Withdrawal of Cautionary Announcement
Shareholders are advised that the review of strategic alternatives has been completed and therefore the cautionary announcement (dated March 5, 2015, renewed on April 20, 2015, June 3, 2015 and July 16, 2015) has been withdrawn. Shareholders no longer need to exercise caution when dealing in the company’s securities.
About MiX Telematics Limited
MiX Telematics is a leading global provider of fleet and mobile asset management solutions delivered as Software-as-a-Service to customers in more than 120 countries. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for safety, efficiency, risk and security. MiX Telematics was founded in 1996 and has offices in South Africa, the United Kingdom, the United States, Uganda, Brazil, Australia and the United Arab Emirates as well as a network of more than 130 fleet partners worldwide. MiX Telematics shares are publicly traded on the Johannesburg Stock Exchange (JSE:MIX) and MiX Telematics American Depositary Shares are listed on the New York Stock Exchange (NYSE:MIXT). For more information visit www.mixtelematics.com.
Forward Looking Statements
This press release includes certain “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements concerning our ability to execute on our strategic plan and our future growth, profitability and cash flow, as well as our ability to grow our market share. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, those described under the caption “Risk Factors” in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC") for the fiscal year ended March 31, 2015, as updated by other reports that the Company files with or furnishes to the SEC. The Company assumes no obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.