THREE shareholders of Amalgamated Regional Trading (ART) have made a mandatory offer to buy out minorities for the company to comply with the Zimbabwe Stock Exchange (ZSE) regulations.
BY OUR STAFF
ZSE rules stipulate that a person or company which acquires a minimum of 35% has to make an offer to other shareholders.
The beneficial owners of the three companies — Zadmab (Private) Limited, Cranbal and Silvermine — have a combined shareholding of 45,7%, thereby exceeding the 35% threshold.
“Cranbal, Silvermine and Zadmab are thus making a joint mandatory offer to all ART Holdings Limited shareholders at an offer of US$0,006 per share held,” said a circular sent to shareholders.
ART operates in the batteries, stationery, personal hygiene and forestry management segments in southern Africa. Its brands include Exide (batteries), Eversharp (pens) and Softex tissues brand.
The offer opened on March 30 and closes on April 24.
According to the circular, the acquisition of a controlling stake in ART Holdings by the offeror was subject to approval by the minister of Industry and Commerce in compliance with the Indigenisation Act.
Since the three companies came on board, ART managed to get a $3 million working capital facility and $15 million for capital expenditure.
Phase 1 of the company’s recapitalisation exercise has seen equipment worth $1,9 million commissioned at Eversharp, Chloride and Kadoma Paper Mills.
“The benefits of this recapitalisation include lower production costs, improved margins and better quality products. In addition, working capital support worth $2 million has been injected into the business, largely in the financing of raw material purchases,” the company said.
The company said the offeror remained committed “to supporting ART Holdings Limited”.
“This commitment will see the availing of funding to effect Phase 2 of the recapitalisation exercise in the 2015/16 period which should see further investments especially in Eversharp and Chloride.