Masawara in $19m minority buy out

HARARE - London-listed Masawara’s wholly-owned subsidiary, Masawara Mauritius spent $11,8 million to buy out part of the minority shareholders in TA Holdings, shoring up its stake to 75,73 percent.

This comes as the Zimbabwe Stock Exchange-listed conglomerate’s minority shareholders holding 57 191 673 shares accepted the offer by Masawara to acquire 58,84 percent of their shares in the company  at the offer consideration of 20,6 cents per share.

“Following the offer, Masawara would own 124 840 933 ordinary shares, constituting 75,73 percent of the shares in TA,” said the company.

Masawara initially held 41 percent of the issued share capital.

In July this year, Masawara offered 20,6 cents a share to acquire all TA shares not already held by the company in a scheme whose success was subject to approval by at least 75 percent of shareholders.

In an unexpected turn of events, Masawara failed to garner the requisite majority in a scheme meeting held in the capital in September.

Old Mutual Life Assurance was the main opponent wielding its power as the second largest shareholder.

The main reason for the rejection was that the offer price is too low. This latest development may lead to the firm delisting from the local bourse.

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.

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