In a significant move, a UAE-based conglomerate has entered into a Non-Binding Indicative Term Sheet with TPL Trakker (TPLT) for the acquisition of a substantial equity stake in Trakker Middle East (TME), a subsidiary of TPLT.
The announcement was made by TPL Trakker Limited, a subsidiary of TPL Corp Limited, in a notification to the Pakistan Stock Exchange (PSX) on Monday.
According to the notice, “In continuation to the announcement of the company dated February 26, 2024, we are pleased to announce that the company has signed a Non-Binding Indicative Term Sheet with a UAE-based conglomerate for a large equity stake in Trakker Middle East (TME), an associated company of TPL Trakker Limited.”
The proposed transaction is subject to approval from relevant regulatory bodies, completion of due diligence, internal approvals, and finalization of definitive documentation, TPLT mentioned.
“The proposed transaction is anticipated to be completed by May 31, 2024,” the notice further stated.
Last month, the Board of Directors of TPLT authorized the management to initiate discussions with the conglomerate for the acquisition of TME.
Trakker Middle East (TME) specializes in providing fleet management and location-based services across the GCC region. The subsidiary offers a comprehensive range of hardware, software, and solutions, spanning from basic telematics to advanced IoT technology.
In previous statements, TME expressed plans to expand its presence into three to four additional countries within the next 12 to 24 months, with Saudi Arabia identified as a key target market.
TPLT CEO Harris Jamali highlighted the significant growth of TME, citing a 40% increase in revenue despite having a relatively small workforce of around 35 employees.
“TPLT’s Middle East subsidiary has been generating substantial foreign currency revenue,” Jamali stated. “It collaborates closely with Dubai police.”
Jamali further elaborated, “The Middle East business demonstrated a 40% growth in the first half of fiscal year 2023, and revenues continue to climb.”
TPL Vehicle Tracking (Private) Limited, incorporated in Pakistan in December 2016, operates as TPL Trakker (Private) Limited. The company, a subsidiary of TPL Corp Limited, specializes in the installation and sale of tracking devices, vehicle tracking, and fleet management services.