It’s been six weeks since long-suffering shareholders of KWV Holdings toasted proposals to uncork the rich asset values of the Paarl-based liquor company.But this week shareholders perusing the circular outlining Vasari Global’s R1.1bn offer for KWV’s operating assets would have sobered up smartly.The circular makes provision for any dissenting KWV shareholders to exercise their appraisal rights. What this means is that KWV would have to buy back the unlisted shares of dissenting shareholders at a fair value price. On paper, this might appear a non-issue. The fair price established by independent auditors KPMG for KWV’s operating assets is around R832m, or R13.47/share.If the value of the so-called “heritage assets” that will be retained by KWV (after Vasari walks off with the operating assets) is added back, there would be an implied fair value of around R16.50/share.This fair value is lower than Vasari’s offer of R16.91/share for the operating assets, and markedly lower than the i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.