Technology distribution group Alviva Holdings has received a binding offer from a consortium that includes management to buy out the business, which, if approved by shareholders, will see its listing on the JSE terminated next year.
The binding offer comes after Alviva, which owns Axiz, Pinnacle and Tarsus Technology Group, informed shareholders in June that it had received a non-binding expression of interest from a black-led consortium to buy it out at R25/share. The binding offer sets a price of R28/share and includes a cash component of up to R2.56-billion, Alviva said.
The acquiring consortium includes “certain members” of Alviva’s management team, among them CEO Pierre Spies, along with Tham Investments, Day One Asset Management and an individual by the name of P Ramasamy. Tham and Ramasamy are two major shareholders and empowerment partners of Alviva and currently own 18.7% of the company.
“The proposed transaction will result in Alviva becoming a majority black-owned, privately held ICT technology champion, repositioning the company to drive the strategic direction of the business for future growth and expansion,” Alviva said in a regulatory filing with the JSE.
“It also allows Alviva shareholders to exit for a cash consideration that is at a substantial premium to the closing price prior to the receipt of the expression of interest.”
Letters of support for the transaction have already been received by shareholders that together own 14.5% of Alviva shares, including Old Mutual and Anchor Capital.
Alviva shares were trading 9.7% higher on Wednesday morning at R26.65 each as a result of the higher-than-expected offer price. – © 2022 NewsCentral Media