A Metrofile Holdings subsidiary will acquire a waste paper company.
The JSE-listed organisation told shareholders this morning that its wholly-owned subsidiary, Metrofile, will purchase Rainbow Waste Paper.
"It is part of the Metrofile group's investment strategy to acquire profitable cash-generative businesses which have good track records and sound management," says the company.
Rainbow, which operates a paper-management business based in Gauteng, forms part of this strategy. "The Rainbow business is expected to make a positive contribution to the Metrofile group's profits and cash flow."
The deal, too small to require shareholder approval, becomes effective at the beginning of next month and all the suspensive conditions have been fulfilled, says Metrofile.
Metrofile's shares moved up 1.6% in early morning trade to change hands at R1.27, which is 2c up from Tuesday's close. Its 12-month high is R2.31 and its 12-month low is 90c.
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