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Voluntary Announcement - Partial Disposal of Interest in Cambridge Mobile Telematics Incorporated
DISCOVERY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/007789/06)
Legal Entity Identifier: 378900245A26169C8132
JSE share code: DSY, DSYBP
DSY ISIN: ZAE000022331
DSBP ISIN: ZAE000158564
Bond company code: DSYI
("Discovery" or the "Discovery Group")
VOLUNTARY ANNOUNCEMENT - PARTIAL DISPOSAL OF INTEREST IN CAMBRIDGE MOBILE TELEMATICS
INCORPORATED ("CMT")
Shareholders and noteholders are advised of the following transaction involving Vitality Group International
Incorporated ("VGI"), a wholly owned subsidiary of Discovery Group, relating to the partial disposal of
approximately half of its interest in CMT for $49.5 million (c. R831 million) (the "Disposal"). The Disposal is an
uncategorised transaction in terms of the JSE Listings Requirements, involves no related parties, and does not
require shareholder approval.
Discovery originally invested $5 million in 2014 to acquire a 21.67% interest in CMT, which has been an associate
investment as well as a strategic partner to Discovery Insure, providing leading expertise in the telematics
environment. Over the period, there have been various capital injections by other investing parties and
corporate actions resulting in net dilution and disposal gains for Discovery of $75 million in aggregate, which
have been recognised outside of normalised profit from operations over time. Included in these was a partial
sell-down in 2019, for which Discovery received $28.5 million in cash proceeds. Prior to the Disposal, Discovery's
remaining shareholding was 8.7%.
Offer for partial disposal of interest in CMT
TPG Global LLC ("TPG") made an offer to CMT shareholders towards the end of the 2025 calendar year (the
"Offer"), in which Discovery was given an option for a partial sale of up to 50% of its remaining shareholding.
The terms of the Offer were appealing to the Group, especially as it expects the strategic partnership to be
largely unaffected by the reduction in the Group's shareholding. The Offer was subject to various jurisdictional
regulatory approvals and other customary suspensive conditions. All required approvals have now been
obtained and the Offer has been finalised.
Following the Offer becoming unconditional, VGI disposed of 49.4% of its total shareholding in CMT, receiving
gross cash proceeds of $49.5 million (c. R831 million) for the Disposal. Discovery will continue to account for the
investment as an associate as a result of its contractual strategic rights and ongoing involvement.
Impact on earnings
The Disposal has crystallised the equity-accounted earnings attributable to this portion to date, as well as an
additional gain on the partial disposal of an interest in an associate of $7.9 million (c. R133 million), net of
attributable costs and tax. The gain on disposal will be excluded from normalised operating profit, headline
earnings and normalised headline earnings for the financial year ending 30 June 2026.
24 March 2026
Sandton
Equity and Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 24-03-2026 01:05:00
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