Friday, 25 April 2008

Napier deal approved by shareholders

According to Marketwire, Napier Environmental Technologies Inc ("Napier") is pleased to announce that it has received shareholder approval for the previously announced sale (by Afro-Ip too) of its intellectual property outside of North America to Freeworld Coatings Global ("Freeworld") and the option grant to Freeworld to acquire the North American sales, marketing and manufacturing operations of Napier, including existing customers outside of North America, for $5.25 million in cash.

The transaction is expected to close in the second quarter, and is subject to definitive agreements, regulatory approvals in Canada and South Africa, including the acceptance by the Toronto Stock Exchange, and various other consents and approvals typical for this type of transaction.

Afro-Leo is pleased to hear that Napier's shareholders have approved the deal which, if it goes ahead, will see an inflow of IP onto the continent by acquisition (whether it is actually held there post acquisition or not), rather than the usual outflow he has become accustomed to reporting. Afro-Leo suspects that the $5.25 million price tag may have become more attractive to the South Africans, following recent exchange rate fluctuations in the past month since the deal was announced(assuming the deal is funded in Rands).

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