Talks between JSE-listed Metrofile and NYSE-listed Iron Mountain have been called off.
In May, Metrofile said US-based Iron Mountain had approached the local company with the view to acquiring the entire issued share capital, other than the 25% shareholding held by the Mineworkers Investment Company, for a price of R1.40 per ordinary share.
At the time, the company said the offer was based on a 5.3% premium on its 30-day volume weighted average price to the date on which the offer was received.
At the end of May, the company announced a black empowerment consortium, to which the company is a sub-contractor, had been informed it had been awarded a substantial contract by a South African government department after a public tender process.
The final terms of the contract have not yet been forwarded to the company, it said. However, if successfully concluded, it may have a material impact on the revenue and earnings of Metrofile Holdings.
This deal led to the break down in talks between the companies. In a statement to shareholders, Metrofile says the discussions have ceased due to lack of clarity on the final terms of the contract awarded to the black empowerment consortium.
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