RAC takes controlling stake in Mauritius-based Astoria
RAC has upped its stake in the investment firm from 29.4% to 78.45%, and is now obliged to make a takeover bid for the rest of the shares
(RAC), the investment house headed by asset managers Piet Viljoen and Jan van Niekerk, has taken a controlling stake in Mauritius-based investment firm Astoria.
The company has upped its stake from 29.4% to 78.45%, and is now obliged to make a takeover offer of the rest of the shares.
RAC paid R144.7m for its increased stake, which, at R2.40 per share, represents a 4.3% premium to Astoria’s share price at Thursday’s close.
Explaining the rationale of the transaction, RAC said: “With a larger shareholding, RAC will be able to provide its capital allocation framework to the Astoria board of directors for implementation.”
RAC has previously tried to take over Astoria, making an offer of R13.50 a share in May 2018, but that deal did not proceed.
Astoria’s share price was unchanged on Thursday morning, having lost 81.75% so far in 2019. RAC was up 1.49% to R15 having lost 14.29% in the year to date.