Imperial to reclaim stock for R388m
The company is preparing to unbundle its vehicle businesses into separately listed Motus Holdings
Imperial Holdings will fork out just more than R388m to buy back more than 4.5 million preference shares as it tidies up the business ahead of a planned unbundling of its vehicle businesses into separately listed Motus Holdings. Preference shares were in vogue for a time among JSE-listed companies, but have since fallen out of favour with the general market, particularly as they are often illiquid and trade at a discount to their net worth. They behave like shares in that their prices can grow over time as they are traded, but are also similar to debt as they pay investors fixed returns in the form of dividends. Imperial issued its preference shares in 2011, but stopped as "there were simply more attractive funding options available", according to the company. In announcing the buyback, Imperial said on Monday that it would help simplify its capital structure ahead of the separation of its businesses into vehicles and logistics, as well as allow its preference shareholders to sell t...
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