17th Sep 2014 14:45
LONDON (Alliance News) - Investment company Masawara PLC Wednesday said its offer to acquire the entire issued share capital of TA Holdings Ltd that it does not already own by way of a scheme of arrangement has not been approved by the requisite majority it needed, and as a result the transaction will now proceed through a substitute offer.
TA Holdings is a Zimbabwe Stock Exchange-listed investment company with interests in the insurance, hospitality and agro-chemicals sectors in southern Africa. It made a post-tax loss of USD5.7 million in 2013 and its net asset value at December 31, 2013 was USD47.8 million.
On July 17, Masawara said it submitted an offer to acquire the entire share capital of TA Holdings Ltd at an offer price of USD0.206 per TA share, or USD20 million in cash.
The company, which acquires assets in companies based in Zimbabwe and southern Africa, holds a 41.04% stake in TA Holdings and sought to acquire the rest of the company through an offer to the TA board.
At the time of its original announcement, the company said it will pay for the purchase through a combination of internal resources and debt funding.
Masawara shares were quoted down 1.0% at 50.00 pence Wednesday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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