HARARE — Amalgamated Regional Trading (ART), has made a mandatory offer to minorities just over a month after its majority shareholders snapped a stake previously held by the National Social Security Authority (NSSA).
The company’s new Korean investors through their investment vehicles Cranbal and Silvermine, now jointly hold 36,5% of the group after NSSA disposed off its 12,7% shareholding on August 18. Minorities are likely going to be offered a minimum of 0,6 cents per share, a premium on the last bid of 0,5 cents, in line with listing requirements.
Analysts say apart from raising capital, NSSA’s decision to divest could have been a result of pressure from the government and Parliament, which has in recent times, questioned its investment decisions.
“The major shareholder of Art has acquired an additional stake thus exceeding the 35% threshold of the company’s listed shares,” company secretary Franklin Mukarakate said in a cautionary statement.
“Pursuant to the Zimbabwe Stock Exchange listing requirements, the shareholder is obliged to make a mandatory offer to minorities. The offer will be made in due course subject to regulatory approvals. This transaction may have a material impact on the price of the company’s shares.”
Earlier on, Cranball and Silvermine initially acquired 41,95% of the issued share capital from Equivest Nominees and Intefin, but opted to sell 9,29% to Basrum Investments linked to chief executive Richard Zirobwa in a bid to bypass the mandatory offer.
Analysts who spoke to The Source said Art could either delist or maintain its presence on the local bourse on condition that the minority shareholders who oppose the offer are more than 300 on the share register.
– The Source
