MANDATORY OFFER TRIGGERED
Finbond investor Riskowitz puts off minorities with discount
Buying fellow Finbond shareholder Snowball triggered a mandatory offer, which the US hedge fund is keen to avoid
A takeover of one of Finbond Group’s shareholders by another shareholder has triggered a mandatory offer to minority shareholders in Findbon - which the buyer is trying to avoid by offering a discount on Finbond’s share price. The buyer and large shareholder, the Riskowitz Value Fund — a US hedge fund — has also obtained irrevocable undertakings from four of the group’s shareholders controlling 53.92% of the shares agreeing not to accept the offer. Riskowitz and Conduit Capital now control 36.8% of Finbond’s shares. At R2.91 per share, the offer is a discount of more than 9% on Finbond’s share price of R3.20 at May 24’s close and 19% to 31% to the fair-value range. "Riskowitz acquired another asset manager that also owned Finbond shares — Snowball Wealth — that caused them to go over 35%," said Finbond CEO Willie van Aardt. This triggered the mandatory offer, though Van Aardt said the remaining 10% of shareholders were unlikely to accept it. The fair-value range was R3.61 to R4.21 p...
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