Masawara concludes TA takeover

HARARE - Jersey-listed Masawara Plc (Masawara) has fully-acquired TA Holdings Limited (TA) after minority shareholders yesterday accepted the investment company’s $0,25 share buyout offer price, businessdaily has learnt.

A source privy to the on-goings at Masawara said the company was happy with the outcome of the meeting between the investment firm and TA minority shareholders.

“Well, I cannot comment and tell you anything today because we have a statement set to come out in the next two days.

“However, all I can tell you is that we are very happy with the outcome of the meeting as it was very positive for us and all is set to move forward,” the source said.

Masawara increased its stake in TA to 76 percent in 2014 but has been facing stiff resistance from minority shareholders for a complete takeover of the company, citing lower price offer.

However, the minority shareholders seem to have been attracted to the new offer price of $0,25 cents per share as opposed to the initial offer of $0,20.

Masawara’s portfolio spans telecommunications, agro-chemicals, insurance and hotels, most of which are owned through its Zimbabwean subsidiary TA.

Businessman Shingai Mutasa recently said Masawara would raise fresh capital in the next few months to “clean up” and restructure TA.

“In the six months to June 2014, revenues and earnings per share (EPS) grew by 7,7 percent and 104 percent respectively despite a fall of two percent in hotel revenues.

“About 33 percent of these revenues were derived from foreign lands which partially insulates TA from a slowdown in the Zimbabwean economy.

One has a better chance of finding a needle in a haystack than finding a growth stock selling at such rock-bottom prices,” said South Africa-based Emergent Research in an earlier note.

In the period under review, the group’s Zimbabwe investments recorded a profit after tax of $2,6 million compared to a loss of $0,8 million in the corresponding period.

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