SHAREHOLDERS
Astoria questions RAC takeover offer
RAC — which has already accumulated a 28.7% stake in Astoria — has pitched a R13.50 a share takeover offer
Offshore investment company Astoria has urged shareholders to weigh up carefully the intricacies of a takeover offer from investment firm RECM & Calibre (RAC). RAC — which has already accumulated a 28.7% stake in Astoria — pitched a R13.50 a share takeover offer to Astoria shareholders at the weekend. The offer represented about a 13% premium to Astoria’s share price before the offer was announced — but discounted the offshore investment company’s last stated net asset value (nav) by about 15%. In a Sens statement on Monday, Astoria pointed out the takeover offer of R13.50 a share could entail the issue of RAC preference shares as part of the settlement. RAC has proposed the offer price will be settled first with a cash consideration of R355m. But if the level of acceptances by Astoria shareholders exceeds an aggregate value in excess of the available cash, the offer will be settled in both cash and the issue of RAC preference shares. Astoria said that the available cash would only ...
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