Technology group Gijima, which plans to delist from the Johannesburg Stock Exchange (JSE) soon, is in trouble with the bourse after failing to submit its interim report within the three-month period stipulated in the listing requirements.
In February, Gijima said its chairman Robert Gumede’s Yebo Guma Investments had made an offer to buy out minority shareholders in the IT group, paving the way for a delisting. The deal was approved by shareholders in early April.
The offer by Guma to buy out the minorities was seen as inevitable after a rights offer, which took place in December, saw Gumede-controlled entities increase their stake in Gijima from 46,7% to 88,4%, leaving a small free float of 11,6%.
Gijima minority shareholders were offered R2,20/share in cash, a premium of 47% on the company’s closing share price before the offer was made public. It was a 31% premium to the volume weighted average price of R1,68/share over the prior 30 days.
“Given the small remaining free float and the current status of the company’s turnaround, which is ongoing, Guma believes it is in the best interests of the company to be held 100% by the Guma entities and to delist, thereby enabling it to complete the turnaround in an unlisted environment,” Gijima said at the time the Yebo Guma offer was announced.
It is not clear if Gijima intends publishing its interim results for the six months ended December 2014 before it is delisted. TechCentral has asked the group for comment and will update this article once this information is received.
The JSE warned that Gijima’s listing is under threat of suspension and possible termination for the contravention of the listing rules.
“Should the company fail to submit its interim report by 30 April 2015, its listing will be suspended,” the JSE said.
Gijima refused to answer a direct question from TechCentral about whether it intends publishing its interim results through the JSE. “As we have advised, we are still in a closed period. However, post the delisting, Gijima will continue to keep its stakeholders abreast of the company’s solid and satisfactory turnaround progress, including the required salient supporting financial data,” said a group spokesman. — © 2015 NewsCentral Media