Novus Holdings is making a bid to acquire JSE-listed technology group Mustek, which has been listed on the local bourse since 1997.
Novus – a listed printing and packaging firm – on Friday revealed it has bought more than 35% of the IT company’s equity, requiring it under South African law to make a mandatory offer to other shareholders.
Novus, which is led by CEO Andre van der Veen, confirmed it will now proceed to make a mandatory offer to other Mustek shareholders. It will offer them:
- A cash consideration of R13/share (below the closing price on Thursday of R13.67/share); or
- A cash amount of R7/share plus one ordinary share in Novus for each Mustek share held; or
- Two Novus shares for each Mustek share tendered.
Often, approaches such as this one result in the target firm being delisted. But Mustek CEO Hein Engelbrecht, who has indicated he won’t sell his shares, told TechCentral by phone on Friday that the intention is for the company to remain listed on the JSE.
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Already, Engelbrecht, Mustek MD Neels Coetzee and the DK Trust – a trust created by late Mustek founder David Kan – have said they will not accept the mandatory offer from Novus as they wish to remain invested. Together they hold 11.7 million Mustek shares, or 20.3% of the total.
Engelbrecht said he can’t comment on whether other shareholders should accept the Novus offer, saying the Mustek board must appoint an independent expert to determine whether the offer is fair before making a recommendation to shareholders.
Novus said it has delivered an “irrevocable unconditional guarantee” issued by Investec in favour of Mustek shareholders in the amount of up to R335-million to support the planned acquisition.
Engelbrecht, Coetzee and Mustek finance director Shabana Aboo Baker Ebrahim are acting in concert with Novus and support the transaction. Engelbrecht said the deal will introduce a stable controlling shareholding to the business. – © 2024 NewsCentral Media
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