MotorCycle Holdings Limited (ASX: MTO) announced that it had entered into a binding agreement to acquire 100% of the shares in Mojo Group(Mojo Motorcycles Pty Ltd and Mojo Electric Vehicles Pty Ltd) for a total consideration of up to AU$60 million on a cash-free, debt-free basis. The total consideration includes 11.539 million MTO shares, AU$20 million in cash, and deferred consideration of up to AU$10 million. MotorCycle Holdings will fund the cash component of this transaction via an increase to its debt facility.
Mojo Group is an importer and supplier of motorcycles, scooters, ATVs, electric motorcycles, and genuine spare parts and accessories, functioning in Australia and New Zealand, and has a 150-strong dealers network. The transaction price denotes earnings multiple of 4.1 times Mojo Group’s FY22 NPAT, and on a proforma FY22 consolidated basis, the transaction is likely to be 18% EPS accretive prior synergies, integration costs, and PPA related amortization.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
