Metrofile take-private PE deal postponed due to Covid-19

Africa Private Equity News last year reported that US-based private equity firm Housatonic Partners has submitted an offer to acquire South African company Metrofile. Johannesburg Stock Exchange-listed Metrofile is a records and information management specialist.

However, due to the Covid-19 crisis, the transaction has now been postponed. Metrofile recently released the following statement:

"The Housatonic Consortium has informed the board of Metrofile that it remains committed to acquiring Metrofile, but realistically neither it nor its bankers can proceed until the Covid-19 crisis and lockdown in South Africa are over and international travel restrictions have been lifted. The Housatonic Consortium will need to see three months of normal trading and revised projections and debt levels before a firm offer package and funding can be finalised.

"Accordingly, the Housatonic Consortium and board of Metrofile have agreed that the current target completion date of 31 May 2020 be postponed and that further communications to shareholders in this regard are likely to occur after the publication of the results for the year ended 30 June 2020."

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