JSE-listed Rolfes will sell the business, stock and fixed assets of its 100%-owned Rolfes Colour Pigments International (RCPI) subsidiary to Chromaflo Technologies South Africa for R36.2-million before adjustments.
RCPI distributes a range of organic and inorganic pigments and manufactures in-plant and point of sale dispersions. The subsidiary has not delivered Rolfes’ required returns for an extended period of time and a sale is, therefore, considered to be in the best interests of Rolfes’ shareholders.
The effective date of the transaction is November 1.
The purchase consideration will be paid in cash on November 4 and the proceeds will be used by the company to reduce its debt.