TA may delist from ZSE

HARARE - Investments group TA Holdings Limited (TA) may delist from the Zimbabwe Stock Exchange (ZSE) after receiving an offer from Masawara Mauritius Limited (Masawara) to acquire 58,96 percent of the company’s ordinary issued share capital.

According to ZSE’s listing rules, a single investor that raises their stake in a listed entity above 35 percent must make an offer to buy-out minorities.

Masawara currently holds an effective 39 percent interest in TA.

In a cautionary published by the bourse, TA informed shareholders that the company had received an offer from Masawara to acquire all its issued ordinary shares.

“The offer from Masawara, a wholly owned subsidiary of Masawara Plc, for Masawara or its affiliates is to acquire all the issued ordinary shares in TA Holdings Limited not currently held by companies under the control of Masawara Plc constituting 58,96 percent of the ordinary issued share capital of the company, at a price of $0,206 per share through a scheme of arrangement under Section 191 of the Companies Act (Chapter 23:04),” the cautionary said.

Harare-based analyst Issis Mwale told businessdaily it was only a matter of time before TA delisted from the local bourse.

“It goes without saying this move is the subsequent privatisation of the institution, so they will no longer be obliged to be registered on the stock market,” she said.

In due course, TA will disclose how the transaction will be executed.

“The requisite notice of the scheme of arrangement and the scheme document incorporating an explanatory statement, the fair and reasonable opinion of the independent financial advisor appointed by the independent directors of the company and the independent directors’ opinion and voting recommendations will be sent to the company’s shareholders,” the ZSE said.

Masawara is an investment company focussed on growth opportunities primarily in Zimbabwe and is pursuing high quality new investment opportunities in the country.

The company which acquired a 50 percent shareholding in Telerix Communication, has significant stake in BP Zimbabwe and Shell Zimbabwe, Masawara also owns an effective 40 percent interest in Joina City, and iWay Africa Zimbabwe.

“The offer is subject to all applicable regulatory approvals being met,” said TA Holdings.

The company recently suspended a $1,5 million refurbishment exercise for its hotel unit, as the group incurred a $5,6 million loss in the year to December 2013.

The investment group, which suffered the loss on the back of a $13,7 million impairment charge against its fertiliser-making subsidiary Sable Chemicals, said the renovation of Cresta Lodge Harare was suspended due to harsh trading conditions.

    Comments (1)

    Their NAV is 60 mln $ but nobody in the market see this as a buy, that's why they delist and will tell you good buy. Its the Zimbabweans who don't like to buy their own undervalued stocks, they prefer to buy big cars instead.

    Emperor - 20 July 2014

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