Australia's MotorCycle Holdings surges on deal to acquire Mojo Group

MotorCycle Holdings

23/09/2022 02:01

** MotorCycle Holdings Ltd  MTO.AX  gains as much as 18.1%
to A$2.55 in its biggest intraday pct jump since Nov 27, 2020
    ** Motorcycle accessories provider signs binding agreement
to acquire Mojo Group, an importer and wholesaler of motorcycles
and accessories (https://bit.ly/3feToyc)
    ** Says deal for a consideration of up to A$60 mln ($39.91
mln) on a cash-free, debt-free basis 
    ** Says deal is expected to be 18% EPS-accretive before
synergies and integrations, etc on a proforma FY22 consolidated
basis 
    ** Says it will fund the cash component of the consideration
through increase to debt facility 
    ** Shares touch their highest level since Sept 8
    ** Stock had fallen 33.3% this year, as of last close     
($1 = 1.5035 Australian dollars)
 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))