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Operational update
Metair Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1948/031013/06)
ISIN: ZAE000090692
Share code: MTA
(“Metair” or the “Group”)
OPERATIONAL UPDATE
Lithium-Ion technology
The Metair board (“Board”) is pleased to announce that Prime Batteries and
Rombat have successfully completed the installation of the Group's first
Lithium-Ion battery cell manufacturing and assembly facility in Bucharest,
Romania. This facility has a production capacity of between 0.6 million and 1
million cells per annum. The commissioning of this facility is progressing
according to plan with production anticipated to begin in the second quarter of
2020. This project marks the conclusion of Metair's €13.6 million greenfield
development capital for Lithium-Ion technology, started in 2017.
Turkey operational update, and changes to Mutlu Aku's board and
management
In spite of geopolitical challenges in Turkey, Metair remains positive in regard
to the market outlook as it enters the typical critical seasonal year-end high
demand cycle.
Following the resignation of Mutlu Aku's chief executive officer (“CEO”) in
November 2019 and until a new CEO is appointed to the Mutlu Aku board,
Metair management, including Messrs Theo Loock and Sjoerd Douwenga, will
assist the local management team. Furthermore, the Board will further
strengthen the existing Mutlu Aku independent board, currently comprising four
members, with the appointment of two independent non-executive Metair
directors, Messrs Manfred Muell and Billy Mawasha. The enlarged
independent board will oversee the appointment of a new CEO to the Mutlu
Aku board.
South African vehicle manufacturing
Although there have been production challenges in the South African OEM
market, the long-term prospects remain positive, with several customers
confirming new vehicle launches and investments. Metair is currently in
negotiations to secure additional business related to the new models.
Strategic update
The Board is pleased to announce the outcome of the strategic review
process designed to enhance shareholder value, as disclosed in the 2018
Integrated Report, as follows:
- The Board has concluded that the two business verticals,
Automotive Components and Energy Storage, are in different
strategic positions and that a managed separation of the two
verticals will unlock value for stakeholders.
- The Board has received unsolicited expressions of interest for the
Energy Storage vertical, and in particular, Mutlu Aku in Turkey. The
Board believes that shareholders’ interest will be best served by
exploring the best way to unlock shareholder value, which will
include the consideration of either keeping the business as a
separate vertical, or potentially selling the business. The Board will
engage with shareholders on this matter.
- In the interim, Metair remains focused on maximising the value
potential for the Energy Storage vertical and on executing on the
growth and expansion opportunities available for the Automotive
Components vertical.
Johannesburg
11 December 2019
Sponsor
One Capital
Date: 11-12-2019 07:05:00
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