Majestic Corporation Plc Completes the Acquisition of Telecycle Europe Limited and change of Auditor
Majestic Corporation Plc (AQSE: MCJ), a sustainable circular economy solutions provider specialising in recycling precious and non-ferrous metals, is pleased to announce the successful completion of its Share Purchase Agreement ("SPA") to acquire the entire issued share capital of Telecycle Europe Limited ("Telecycle") (the “Acquisition”)
This strategic Acquisition follows the conditional SPA announced on 3 September 2024, with all conditions now satisfied. The total consideration of £2 million will be paid in 13 monthly instalments of £150,000, commencing in May 2025, with a final payment of £50,000 due in June 2026.
Telecycle, is a profitable UK-based recycling business, has an established and trusted supply network within the UK and has acted as a tolling agent for Majestic. The Acquisition strengthens Majestic’s position by securing the steady supply of recyclable material, expands its network of suppliers and customers, and eliminates any perceived conflicts of interest
Telecycle provides Majestic with a fully licensed and ISO-certified facility in Deeside Wales which includes an e-waste and collection, sorting, processing, and shipping operations. The benefits will include the streamlining of consolidated financial statements and potentially improved margins overall.
Related Party Transaction
As Peter Lai is a Director of Majestic, as well as a Director and the sole shareholder of Telecycle, this Acquisition is considered a related party transaction under the Aquis Stock Exchange Rules. The Board of Directors of Majestic (excluding Peter Lai) have confirmed the completion of this SPA to be fair and reasonable for Majestic's shareholders and an accretive acquisition for Majestic.
Given the nature of the related party relationship, Majestic and Telecycle have been working harmoniously for over 3 years and this transaction completes and formalises the corporate structure of Majestic.
Change of Auditor
Separately, the Company announces it has appointed RPG Crouch Chapman as its auditors and, as announced on 24 March 2025, anticipates publishing its FTY24 audited results by 30 May 2025.
Joe Lee, Director and CFO of Majestic Corporation Plc, commented:
"I am delighted that the Acquisition has been successfully completed which marks a significant step forward for Majestic. This transaction not only enhances Majestic’s operational efficiency but also positions the Company for sustained future growth.”