Group Five spikes on Greenbay offer
The construction group says the unsolicited R1.6bn offered for European assets undervalues the company
Group Five’s share price surged as much as 42% on Monday after it received an unsolicited firm-intention cash offer for its European assets and businesses from Greenbay Properties for R1.6bn. One market commentator welcomed the news, saying it indicated how much value was potentially locked up in the group. But the listed construction and engineering company was less enthusiastic, describing the offer as undervalued. It comes after an exodus of executives and board members from Group Five in the past nine months, amid confusion over the company’s strategy and painful losses, mostly as a result of its South African engineering and construction cluster. The assets comprise concession stakes in central and eastern Europe, including its Bulgarian assets and Intertoll Europe operations and maintenance contracts that provide significant annuity income. The share price shot up as much as 42% during the day and was almost 25% higher at R11.50 by the close. This gives Group Five a market cap...
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