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According to a deal announced on Tuesday, the RBC - which holds a sprawling investment portfolio underpinned by platinum - paid more than three times Zaptronix's market price for its strategic stake.
RBC paid 16c/share for a 30% stake in Zaptronix when the closing share price for Zaptronix was just 5c on Monday. Zaptronix shares leapt 80% to an intraday high of 9c on news of the RBC deal.
While the deal is relatively small measured against RBC's total investment portfolio, it is fascinating that the empowerment group was prepared to pay such a large premium for a strategic stake in Zaptronix.
The RBC deal, which has been on the cards for many months, was facilitated by Strider Holdings, which agreed to sell 113.8m Zaptronix shares to the RBC. This means there is no dilution to the holdings of existing Zaptronix shareholders.
Zaptronix, which specialises in risk management services in the energy and mobile industries, this week advised that earnings would come in between 0.15c/share and 0.21c/share for year ending August 2007.
- Fin24
