MotorCycle (ASX:MTO) shares zoom up on Mojo acquisition

September 23, 2022 11:29 AM AEST | By Ritwika
Follow us on Google News:


  • MotorCycle Holdings has announced today that it would acquire 100% shares of Mojo Motorcycles and Mojo Electric Vehicles. 
  • The company will acquire Mojo Group for a cash consideration of up to AU$60 million on a cash free, and debt free basis.
  • The acquisition is expected to get completed within 31 October 2022. 

Shares of Australian motorcycle dealership operator MotorCycle Holdings Limited (ASX:MTO) started today’s trading session 14.814% stronger at AU$2.480 per share at 10:21 AM AEST today, backed by the acquisition news of Mojo Motorcycles Pty Ltd and Mojo Electric Vehicles Pty Ltd.

MotorCycle announced that it would acquire 100% of the shares in Mojo Motorcycles and Mojo Electric Vehicles. Mojo Group is a leading distributor and importer of motorcycles, scooters, ATVs, electric motorcycles, and genuine spare parts and accessories in Australia and New Zealand. The group has a strong network of 150 holders at present.

Details of MotorCycle’s acquisition of Mojo: 

According to MotorCycle’s recent update, the company will acquire Mojo Group from companies owned by Michael Poynton and Joshua Carter for consideration of up to AU$60 million on a cash-free, and debt-free basis, which includes:

The company will be funding the cash component of the acquisition by increasing its debt facility.

The consideration of the Mojo acquisition represents earnings multiple of 4.1 times of Mojo Group’s FY22 net profit before tax and on a proforma FY22 consolidated basis. Furthermore, the transaction is expected to be 18% earnings per share accretive before synergies, integration costs and PPA-related amortisation.

The principals of Mojo Group, Michael Poynton and Joshua Carter, will now take up the responsibilities of senior executives with MotorCycle. Along with that, Michael Poynton will also join the board of MotorCycle.

However, the completion of the acquisition of Mojo depends on some conditions, such as securing approval for the issue of the consideration shares at the Annual General Meeting and receiving the significant contract and third-party consent.

As per the update, the acquisition is expected to get completed by 31 October 2022.

David Ahmet, Managing Director and founder, MotorCycle, said:  


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK