With the sorry state of the JSE — especially desultory ratings tagged to so-called SA Inc stocks — no-one should be surprised that several delistings schemes have been mooted in recent weeks. Three small caps — industrial services business Howden Africa, logistics specialist Cargo Carriers and direct retailer Verimark — have recently indicated a willingness to buy out minority shareholders and shuffle off the bourse. There is a common thread running through the three counters. All trade on dismissive earnings multiples, the shares are illiquid and the share register is dominated by a single dominant shareholder. What’s more, none of these companies would need, for the foreseeable future, to use the JSE as a platform to raise fresh capital. Of course, the critical issue for minority shareholders is the buyout price that underpins the delisting scheme. In these tough times, a majority shareholder has nothing to lose (aside from a reputational dent) by pitching a cheeky offer to jitte...
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